Question

A car loses 20% of its value every

year. How much will a £6000 car be worth after
a)1 year?
b) 3 years?
c) 8 years?​

Answer 1

See below

Explanation:

20% loss a year with initial value of £6000 can be shown as function:

• V(t) = 6000*0.8^t

V(t) - is the value after t years

a) t = 1 year

• V(1) = 6000*0.8 = £4800

b) t = 3 years

• V(3) = 6000*0.8^3 = £3072

c) t = 8 years

• V(8) = 6000*0.8^8 = £1006.63