a car sells for $25000. if the rate depreciation is 15% what is the value of the car after 7 years
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To calculate the value of the car after 7 years with a depreciation rate of 15%, you'll need to use the formula for compound interest:
Value = Initial Value × (1 - Depreciation Rate)^Number of Years
First, let's calculate the depreciation rate as a decimal: 15% = 0.15
Now we can substitute the values into the formula:
Value = $25000 × (1 - 0.15)^7
To solve the equation, start by calculating the exponential expression:
(1 - 0.15)^7 = 0.85^7 ≈ 0.3781
Now substitute this value back into the original equation:
Value ≈ $25000 × 0.3781
Calculating the final value:
Value ≈ $9452.50
Therefore, after 7 years with a depreciation rate of 15%, the value of the car would be approximately $9452.50.