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?

Answer 1

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.