A new car is purchased for 25000 dollars. The value of the car depreciates at 8.25% per year. What will the value of the car be, to the nearest cent, after 15 years?
To calculate the value of the car after 15 years, you can use the formula for exponential decay:
V = P * (1 - r)^t
Where:
V = Final value of the car
P = Initial value of the car = 25000 dollars
r = Depreciation rate per year = 8.25% = 0.0825
t = Number of years = 15 years
Plugging in the values:
V = 25000 * (1 - 0.0825)^15
V = 25000 * (0.9175)^15
V = 25000 * 0.287139
V = 7178.48
Therefore, the value of the car after 15 years will be approximately 7178.48 dollars.