Suppose It Is Estimated That the Value of a Car $A = P _ { 0 } ( 0.7 ) ^ { t }$

Multiple Choice

Suppose it is estimated that the value of a car depreciates 30% per year for the first 10 years. The equation $A = P _ { 0 } ( 0.7 ) ^ { t }$ yields the value ( A ) of a car after t years if the original price is P o . Find the value (to the nearest dollar) of $16,000.00 car after 2 years.

A) $5,227
B) $7,840
C) $18,032
D) $3,920