A car is purchased for \( \$ 24,500 \). After each year, the resale value decreases by \( 30 \% \). What will the resale value be after 3 years? Use the calculator provided and round your answer to the nearest dollar.

To calculate the resale value of the car after 3 years, we start with the initial price of \( \$24,500 \) and apply the 30% depreciation each year. After Year 1: Resale value = \( 24,500 - (0.30 \times 24,500) = 24,500 - 7,350 = 17,150 \) After Year 2: Resale value = \( 17,150 - (0.30 \times 17,150) = 17,150 - 5,145 = 12,005 \) After Year 3: Resale value = \( 12,005 - (0.30 \times 12,005) = 12,005 - 3,601.50 = 8,403.50 \) Rounded to the nearest dollar, the resale value after 3 years is **\$8,404**. Now, let's get into some historical background and real-world application! Did you know that the concept of depreciation has been around since the time of the ancient Greeks and Romans? They recognized that certain assets, like ships and land, would lose value over time, especially due to wear and tear, which is a principle that economists still explore today! In the modern world, understanding car depreciation is crucial for both buyers and sellers. It helps you figure out how much a car will be worth when you're ready to sell it. For buyers, knowing how much value a car loses can lead to more informed purchasing decisions and possibly saving yourself some good bucks!