Answer:
$8,262.53
Step-by-step explanation:
We can use the following formula to solve:
[tex]A=P(1-r)^t[/tex]
P = principal value
r = rate (decimal)
t = time (years)
First, lets change 16% into a decimal:
16% -> [tex]\frac{16}{100}[/tex] -> 0.16
Now, plug in the values into the equation:
[tex]A=28,000(1-0.16)^7[/tex]
[tex]A=8,262.53[/tex]
The car will be worth $8,262.53
