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Sam bought a new car for $26,500. The car depreciates approximately 13% of its value each year. What is the approximate value of the car be in 10 years?

Answer :

The approximate value of the car in 10 years is about $6583.22
This depreciation case follows the exponential equation:

y=26500(0.87)^x
where x is the number of years after the purchase year

Let us now substitute with x = 10

y= 26,500 (0.87)^10 =  26,500 * 0.2484 = 6583$

hope that helps

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