SOLUTION: Alex purchased a new car for $28,000. The car's value depreciates 7.25% each year. What will be the value of the car 5 years after it is purchased? Round your answer to the nearest

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Alex purchased a new car for $28,000. The car's value depreciates 7.25% each year. What will be the value of the car 5 years after it is purchased? Round your answer to the nearest      Log On

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Question 1117333: Alex purchased a new car for $28,000. The car's value depreciates 7.25% each year. What will be the value of the car 5 years after it is purchased? Round your answer to the nearest dollar.
Answer by josgarithmetic(39616) About Me  (Show Source):
You can put this solution on YOUR website!
28000-0.0725%2A28000=25970
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25970%281-0.0725%29=24087.175
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24087.175%2A%281-0.0725%29=22340.8548
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22340.8548%281-0.0725%29=20721.1428
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20721.1428%281-0.0725%29=19218.86


highlight%2819219%29

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p=B%281-r%29%5Ex
p, value after x years
x, time passed, years
B, initial amount
r, depreciation rate as a decimal
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p=28000%281-0.075%29%5E5
p=19218.9
nearestdollar19219