Laura buys a new car for £14600. The annual rate of depreciation is 23%. How much is the car worth after 3 years? Explain your answer.

The car will be worth £11,092.40 after 3 years. This is calculated by taking the original cost of the car (£14,600) and multiplying it by (1 - 0.23)^3, which is equal to 0.77^3. This gives us 0.531, which when multiplied by the original cost of the car gives us the value of the car after 3 years.