SOLUTION: You buy a car for $27500. It depreciates at a rate of 9% per year. You are able to obtain a 7 year loan to pay off your car. What is the value of your car when you trade it in 7 ye

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Question 966666: You buy a car for $27500. It depreciates at a rate of 9% per year. You are able to obtain a 7 year loan to pay off your car. What is the value of your car when you trade it in 7 years later?
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
it depreciates 9% per year.

in 7 years, it's value will be 27500 * (1 - .09)^7

this is the same as 27500 * .91^7 which is equal to 14210.92803.

you car will be worth 14210.92803 in 7 years.