Question

A car is purchased for 16,500. After each year, the resale value decreases by 20%. What will the resale value be after 4 years?

PLEASE round your answer to the nearest dollar.

Answer 1

≈ $6,758

Explanation:

Using the formula;

A = P (1-r/100)^n

Where A is the amount after depreciation, P is the original amount before depreciation, r is the rate of differentiation, and n is the number of years.

A = 16,500 (1 -20/100)^4

= 16,500 × 0.8^4

= 6,758.4

≈ $6,758