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.
To find the value of the car 5 years after it is purchased, we first need to calculate the depreciation each year.
Depreciation per year = 7.25% of $28,000
Depreciation per year = 0.0725 * $28,000
Depreciation per year = $2,030
After 5 years, the value of the car will be:
Value of the car after 5 years = $28,000 - ($2,030 * 5)
Value of the car after 5 years = $28,000 - $10,150
Value of the car after 5 years = $17,850
Therefore, the value of the car 5 years after it is purchased will be approximately $17,850.