A new car is purchased for 24500 dollars. The value of the car depreciates at 14.75% per year. What will the value of the car be, to the nearest cent, after 14 years?

Answer: the value of the car will be

$2623.5

Step-by-step explanation:

We would apply the formula for exponential decay which is expressed as

A = P (1 - r) ^ t

Where

A represents the value of the car after t years.

t represents the number of years.

P represents the value of the car.

r represents rate of decay.

From the information given,

P = 24500 dollars

r = 14.75% = 14.75/100 = 0.1475

t = 14 years

Therefore

A = 24500 (1 - 0.1475) ^14

A = 24500 (0.8525) ^14

A = $2623.5

y≈2623.54