A new car is purchased for 17900 dollars. The value of the car depreciates at 12.25% per year. What will the value of the car be, to the nearest cent, after 10 years?
Since the car depreciates at 12.25% per year, its value after each year can be found by multiplying the previous year's value by 1 - 0.1225 = 0.8775
To find the value of the car after 10 years, we need to multiply the initial value of $17900 by this depreciation factor 10 times.
The value of the car after 10 years is 17900 * (0.8775)^10.
Using a calculator, this evaluates to $6415.84, rounded to the nearest cent, the value of the car after 10 years will be $6415.84.