Answer:
Value of the car after depreciation = $800.
Step-by-step explanation:
Formula to get the final value of the car after depreciation of the car price,
Final value = [tex]\text{Initial value}(1-\frac{r}{100})^{\frac{t}{n} }[/tex]
Here, t = Number of years after the purchase
n = Number of years for the depreciation of price by half
By substituting values in the formula,
Final value = [tex]40000(1-\frac{50}{100})^{\frac{17}{3}}[/tex]
= [tex]40000(0.5)^{\frac{17}{3}}[/tex]
= $787.451
≈ $800 [Nearest hundred dollars]
Therefore, after 17 years value of the new car will be $800.
