You purchase a car for $23,000. The car depreciates at a rate of 15% per year. Determine the value of the car after 7 years. Round your answer to the nearest cent.
Set up the Depreciation equation:
D(t) = 23,000/(1.15)^t
We want D(7)
D(7) = 23,000/(1.15)^7
D(7) = 23,000/2.66002
D(7) = 8,646.55
Set up the Depreciation equation:
D(t) = 23,000/(1.15)^t
We want D(7)
D(7) = 23,000/(1.15)^7
D(7) = 23,000/2.66002
D(7) = 8,646.55