If a car's cost, when new, is $15,000 and the rate of depreciation is 30%, how much will the car be worth after 4 years?

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The rate of depreciation is given as 30%. This means that the value of the car reduces by 30% every year. Or the value of the car after a year is 1 - 30% = 70% of its value in the previous year.

Originally the value of the car is $15000. After 4 years its value would be

$15000 * 0.7 * 0.7 * 0.7 * 0.7

=> $15000 * 0.7^ 4

=> $3601.5

The required value of the car after 4 years is $3601.5

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