The car will be worth $20467 in 2017
How to determine the worth in 2017?
The given parameters are:
Initial value, a = 38000
Depreciation rate, r = 6%
The value of the car after x years is represented by the following exponential equation
V(x)= a(1 - r)^x
Substitute the known values in the above equation
V(x) = 38000 * (1 - 6%)^x
2017 is 10 years from 2007
This means that x = 10
So, we have:
V(x) = 38000 * (1 - 6%)^10
Evaluate
V(x) = 20467
Hence, the car will be worth $20467 in 2017
Read more about exponential functions at:
https://brainly.com/question/2456547
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