The value of the car is $7306.10 after 8 years.
Given
A new car is purchased for 16600 dollars.
The value of the car depreciates at 9.75% per year.
What is depreciation?
Depreciation denotes an accounting method to decrease the cost of an asset.
To get the depreciation of a partial year, you need to calculate the depreciation a full year first.
The formula to calculate depreciation is given by;
[tex]\rm V =P (1-r)^t[/tex]
Where V represents the depreciation r is the rate of interest and t is the time.
Substitute all the values in the formula;
[tex]\rm V =P (1-r)^t\\\\V = 16600(1-\dfrac{9.75}{100})^8\\\\V = 16600(\dfrac{100-9.75}{100})^8\\\\V = 16600(\dfrac{90.25}{100})^8\\\\V = 16600(0.9025)^8\\\\V = 16600 \times 0.44\\\\V = 7306.10[/tex]
Hence, the value of the car is $7306.10 after 8 years.
To know more about Depreciation click the link given below.
https://brainly.com/question/13734742
