Kyle buys a car for $58,000. His car immediately starts depreciating, losing 23% of its value every year. How much will the car be worth in 12 years?
To find the value of the car in 12 years, we need to calculate the depreciation of the car each year and subtract it from the previous year's value.
Let the initial value of the car be $58,000.
After 1 year: $58,000 - 0.23($58,000) = $58,000 - $13,340 = $44,660
After 2 years: $44,660 - 0.23($44,660) = $44,660 - $10,267.80 = $34,392.20
After 3 years: $34,392.20 - 0.23($34,392.20) = $34,392.20 - $7,901.52 = $26,490.68
Continuing this pattern, we find that the value of the car after 12 years will be:
$58,000(1 - 0.23)^12 = $58,000(0.77)^12 ≈ $2,128.96
So, the car will be worth approximately $2,128.96 in 12 years.