The value of a car purchased for $28,000 decreases at a rate of 9% per year. What will be the value of the car after 7 years? ( round to the nearest tenth)
To find the value of the car after 7 years, we need to calculate the decrease in value each year and subtract it from the initial purchase price.
First, let's calculate the decrease in value for each year:
Decrease in value = 9% × $28,000 = $2,520
Next, let's calculate the value of the car after 7 years:
Value of the car after 7 years = $28,000 - 7 × $2,520
Value of the car after 7 years = $28,000 - $17,640
Value of the car after 7 years = $10,360
Therefore, the value of the car after 7 years will be approximately $10,360.
To find the value of the car after 7 years, we need to calculate the 9% decrease per year for 7 years and subtract that from the original value of $28,000.
First, let's calculate the decrease per year. To do this, we multiply the original value ($28,000) by the rate of decrease (9% or 0.09):
$28,000 * 0.09 = $2,520
This means that each year, the car decreases in value by $2,520.
Now, to find the value of the car after 7 years, we need to subtract 7 times the decrease per year from the original value:
$28,000 - (7 * $2,520) = $11,760
So, after 7 years, the value of the car will be approximately $11,760 (rounded to the nearest tenth).
1-.09 = 0.91
so
28,000 * (0.91)^7