Ms. Hamm bought a new car for $37,500. It is said that her car depreciates at a rate of 7% each year

This would mean that the next year her car's value would go down by $2,625. The new value of the car would consequently be $34,875.

Here is how you can solve this problem:

Now that we know that 1% of $37,500 is $375, let's multiply this value by 7.

Let's say that the next year, her car value goes down by 7% again.

THIS IS THE IMPORTANT PART:

YOU FIND 7% OF THE NEW VALUE, NOT $37,500. YOU WOULD FIND 7% OF $34,875.

Hope this helps! :)

a is the correct

i dont get the question

step-by-step explanation: