SOLUTION: A new car is purchased for 17000 dollars. The value of the car depreciates at 13.5% per year. What will the value of the car be, to the nearest cent, after 12 years?

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: A new car is purchased for 17000 dollars. The value of the car depreciates at 13.5% per year. What will the value of the car be, to the nearest cent, after 12 years?      Log On

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Question 1137004: A new car is purchased for 17000 dollars. The value of the car depreciates at 13.5% per year. What will the value of the car be, to the nearest cent, after 12 years?
Answer by MathLover1(20850) About Me  (Show Source):
You can put this solution on YOUR website!

Original Price = $17000

if reduced by 13.5% each year,
after one year, this can be represented as:

$17000+-+0.135%2A17000 or $17000%2A%281+-+0.135%29+

or $17000%2A%280.865%29

WE THEN JUST MULTIPLY THE PREVIOUS AMOUNT BY+0.865 EACH YEAR

making a table
YEAR | AMOUNT
0 | $17000
1+ | $17000%2A%280.865%29
2+ | $17000%2A%280.865%29%2A%280.865%29+
3 | $17000%2A%280.865%29%2A%280.865%29%2A%280.865%29+

and so on

WE CAN REWRITE THIS AS: $17000%2A%280.8%29%5En WHERE n IS THE NUMBER OF YEARS

SO AFTER 12 YEARS: AMOUNT = $17000%2A%280.865%29%5E12++=++2982.92+