a car is purchased for $25,000. after each year, the resale value decreases by 35%. what will the resale…

a car is purchased for $25,000. after each year, the resale value decreases by 35%. what will the resale value be after 4 years? use the calculator provided and round your answer to the nearest dollar.

a car is purchased for $25,000. after each year, the resale value decreases by 35%. what will the resale value be after 4 years? use the calculator provided and round your answer to the nearest dollar.

Answer

Explanation:

Step1: Identify the formula

The formula for exponential - decay is $A = P(1 - r)^t$, where $P$ is the initial value, $r$ is the rate of decay, and $t$ is the time. Here, $P=$25000$, $r = 0.35$, and $t = 4$.

Step2: Substitute the values into the formula

$A=25000\times(1 - 0.35)^4$. First, calculate $1-0.35 = 0.65$. Then, $(0.65)^4=0.65\times0.65\times0.65\times0.65 = 0.17850625$.

Step3: Calculate the final value

$A = 25000\times0.17850625=4462.65625$. Rounding to the nearest dollar, $A\approx4463$.

Answer:

$4463$