daisy purchased a food processor for $23,000 in the year 2009. it loses its value by 7% per year. what is…

Explanation:

Step1: Determine the number of years

The time from 2009 to 2012 is $2012 - 2009=3$ years.

Step2: Use the depreciation formula

The formula for depreciation is $A = P(1 - r)^t$, where $P$ is the initial price, $r$ is the rate of depreciation, and $t$ is the number of years. Here, $P = 23000$, $r=0.07$, and $t = 3$. So, $A=23000\times(1 - 0.07)^3$. First, calculate $1-0.07 = 0.93$. Then, $(0.93)^3=0.93\times0.93\times0.93 = 0.804357$. Finally, $A = 23000\times0.804357=18500.211\approx18500.21$.

Answer:

18500.21