Answer:
The value of the car, to the nearest cent, after 12 years will be $ 6,765.35
Step-by-step explanation:
Let's recall that depreciation on a car can be determined by the formula:
V = C * (1 - r)^t , where:
V is the value of the car after t years,
C is the original cost
r is the rate of depreciation
t is the number of years of utilization of the car
Therefore, we have:
V = C * (1-r)^t
V = 20,300 * (1 - 0.0875)¹²
V = 20,300 * 0.333268
V = 6,765.35 (rounding to the nearest cent)
