Answer:
[tex]V = 17850[1-\frac{7}{100} ]^{7}[/tex]
$10470.36
Step-by-step explanation:
A witches broom bought for $17850, depreciates in value every year at a rate of 7%.
So, the value of the broom decreases every year by 7% of its previous year's value.
Therefore, after 7 years the value of the broom will become [tex]V = 17850[1-\frac{7}{100} ]^{7}[/tex] ........ (1)
Hence, this equation (1) is the model equation for the value of the broom.
Solving equation (1), we get the value V = $10740.36. (Answer)
