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14 October, 12:18

Kathy plans to purchase a car that depreciates (loses value) at a rate of 14 %per year. The initial cost of the car is $21,000. What is the value of the car at the nearest dollar after 3 years?

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  1. 14 October, 12:37
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    After 3 years the car will have the value $13 358.

    Step-by-step explanation:

    1st year:

    21000*14% = 21000*14/100 = 2940 - this is the value that will be lost after one year

    21000-2940 = 18060

    2nd year

    We are taking the value of the car after one year - $18060

    18060*14% = 18060 * 14/100 = 2528

    18060 - 2528 = 15532

    3nd year

    Now we are taking the value of the car from the 2nd year - $15532

    15532*14% = 15532*14/100 = 2174

    15532-2174 = 13358
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