Question

In the year 2010, a person bought a new car for $26000. For each consecutive year after that, the value of the car depreciated by 10%. How much would the car be worth in the year 2014, to the nearest hundred dollars?

Answer 1

$17,100

Explanation:

Set up an equation where y is the worth of the car and t is the number of years since 2010:

y = 26000(0.9)^t

Plug in 4 as t, since it is asking about 2014:

y = 26000(0.9)^t

y = 26000(0.9)^4

y = 17058.6

Round to the nearest hundred dollars:

17058.6

= 17,100

So, the car will be worth approximately $17,100