To find the value of the car 5 years after it is purchased, we need to calculate the depreciation for each year and subtract it from the original price of $28,000.
First, calculate the depreciation for each year:
Year 1: $28,000 * 7.25% = $2,030
Year 2: ($28,000 - $2,030) * 7.25% = $1,864.75
Year 3: ($28,000 - $2,030 - $1,864.75) * 7.25% = $1,690.44
Year 4: ($28,000 - $2,030 - $1,864.75 - $1,690.44) * 7.25% = $1,540.07
Year 5: ($28,000 - $2,030 - $1,864.75 - $1,690.44 - $1,540.07) * 7.25% = $1,403.77
Now, subtract the total depreciation from the original price:
$28,000 - $2,030 - $1,864.75 - $1,690.44 - $1,540.07 - $1,403.77 = $19,471.97
Therefore, the value of the car 5 years after it is purchased will be approximately $19,472.
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.
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how do you get 2000 when multiplying
I apologize for getting the calculation wrong. Let's correct the calculation.
Given that the car depreciates by 7.25% each year and the original price is $28,000, we can calculate the value of the car 5 years after it is purchased as follows:
Depreciation for year 1 = $28,000 * 7.25% = $2,030.00
Value of car after year 1 = $28,000 - $2,030.00 = $25,970.00
Depreciation for year 2 = $25,970.00 * 7.25% = $1,881.43
Value of car after year 2 = $25,970.00 - $1,881.43 = $24,088.57
Depreciation for year 3 = $24,088.57 * 7.25% = $1,746.17
Value of car after year 3 = $24,088.57 - $1,746.17 = $22,342.40
Depreciation for year 4 = $22,342.40 * 7.25% = $1,619.70
Value of car after year 4 = $22,342.40 - $1,619.70 = $20,722.70
Depreciation for year 5 = $20,722.70 * 7.25% = $1,501.03
Value of car after year 5 = $20,722.70 - $1,501.03 = $19,221.67
Therefore, the value of the car 5 years after it is purchased will be approximately $19,222 when rounded to the nearest dollar. Thank you for catching that mistake, and I appreciate your attention to detail.
Given that the car depreciates by 7.25% each year and the original price is $28,000, we can calculate the value of the car 5 years after it is purchased as follows:
Depreciation for year 1 = $28,000 * 7.25% = $2,030.00
Value of car after year 1 = $28,000 - $2,030.00 = $25,970.00
Depreciation for year 2 = $25,970.00 * 7.25% = $1,881.43
Value of car after year 2 = $25,970.00 - $1,881.43 = $24,088.57
Depreciation for year 3 = $24,088.57 * 7.25% = $1,746.17
Value of car after year 3 = $24,088.57 - $1,746.17 = $22,342.40
Depreciation for year 4 = $22,342.40 * 7.25% = $1,619.70
Value of car after year 4 = $22,342.40 - $1,619.70 = $20,722.70
Depreciation for year 5 = $20,722.70 * 7.25% = $1,501.03
Value of car after year 5 = $20,722.70 - $1,501.03 = $19,221.67
Therefore, the value of the car 5 years after it is purchased will be approximately $19,222 when rounded to the nearest dollar. Thank you for catching that mistake, and I appreciate your attention to detail.
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