A new car is purchased for 24800 dollars. The value of the car depreciates at 12% per year. What will the value of the car be, to the nearest cent, after 13 years?

Answer: the value of the car would be $4706.8 after 13 years.

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 initial value of the car.

r represents rate of decay or depreciation.

From the information given,

P = 24800 dollars

t = 13 years

r = 12% = 12/100 = 0.12

A = 24800 (1 - 0.12) ^13

A = 24800 (0.88) ^13

A = $4706.8 to the nearest cent

4706.81