Answer: $6765.35 or $6765 and 35 cents .
Step-by-step explanation:
Given : New cars purchased for $20,300 the value of the car depreciate at 8.75% per year.
i.e. Initial value : [tex]A_0= \$20,300[/tex]
Rate of depreciation : r= 8.75% =0.0875
Time : t= 12 years
Formula : [tex]A=A_0(1-r)^{t}[/tex] , where A is the value of car after t years.
Substitute the corresponding values , we get
[tex]A=\$20300(1-0.0875)^{12}[/tex]
[tex]A=\$20300(0.9125)^{12}[/tex]
[tex]A=\$20300(0.333268661729)[/tex]
[tex]A=\$6765.35383309\approx\$6765.35[/tex] [Rounded to the nearest cent]
Hence, the value of the car after 12 years will be $6765.35 .
