High School

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**Part 2 (40% of grade)** - You will be asked to do all FOUR problems in this section on your exam. Extra problems are provided for your review.

1. A new car costs [tex]\$46,000[/tex]. The value of the car decreases by [tex]13\%[/tex] each year. Which of the following expressions gives the cost of the car after 7 years?

A. [tex]46,000 \times (1-13)^7[/tex]
B. [tex]46,000 \times (1+0.13)^7[/tex]
C. [tex]46,000 \times (1-0.13)^7[/tex]
D. [tex]46,000 \times (7)^{0.13}[/tex]
E. [tex]46,000 \times e^{0.13 \times 7}[/tex]
F. [tex]46,000 \times e^{0.87 \times 7}[/tex]
G. [tex]46,000[/tex]

Answer :

To solve the problem of finding the cost of a car after 7 years, given that its value decreases by 13% each year, follow these steps:

1. Initial Value of the Car: The car initially costs [tex]$46,000.

2. Depreciation Rate: The value of the car decreases by 13% annually. This means that each year, the car retains 87% of its value from the previous year. We calculate this by subtracting the depreciation rate from 1:
\[
1 - 0.13 = 0.87
\]

3. Expression for Depreciation: Over multiple years, the value of the car is multiplied by 0.87 once for each year. Therefore, after 7 years, the expression representing the car's value is:
\[
46000 \times (0.87)^7
\]

4. Calculate the Cost After 7 Years: Plug the values into the expression to get the cost of the car after 7 years:
\[
46000 \times (0.87)^7 = 17,353.72056438018
\]

Thus, after 7 years, the value of the car is approximately $[/tex]17,353.72.

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