Problem

A car is purchased for $\$ 26,500$. After each year, the resale value decreases by $25 \%$. What will the resale value be after 4 years? Use the calculator provided and round your answer to the nearest dollar:

Solution

Step 1 :Calculate the resale value using the formula: \(Resale Value = Initial Value * (1 - Depreciation Rate)^{Number of Years}\)

Step 2 :Plug in the values: \(Resale Value = 26500 * (1 - 0.25)^4\)

Step 3 :Calculate the resale value: \(Resale Value = 8384.765625\)

Step 4 :Round the resale value to the nearest dollar: \(Resale Value = 8385\)

Step 5 :\(\boxed{Final Answer: 8385}\)

From Solvely APP
Source: https://solvelyapp.com/problems/25827/

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