If the cost of car is $26000 and it depreciates by one half every 7 years, then the cost of car will reach to $8800 after 10 years.
Given that the cost of car is $26000 and it depreciates by one half every 7 years.
We are required to find the number of years after which the cost of car will reach $8800.
Because the method of depreciation is not given in question, so we will apply straight line method of depreciation.
Depreciation is the gradual or permanent decrease in the cost of asset due to passage of time and many factors.
Depreciation of 7 years=26000*R*7
13000=26000*R*7
R=13000/26000*7
=7.14%
The cost of car will be $8800,so the depreciation charged will be 26000-8800=$17200
17200=26000*7.14/100 *N
N=1720000/26000*7.14
=9.2652
Because it is slightly larger than 9 so we can approx it as 10 years.
Hence if the cost of car is $26000 and it depreciates by one half every 7 years, then the cost of car will reach to $8800 after 10 years.
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