Question

On January 1, 2010, Lucita bought a car for $25,000. If the car depreciates at a rate of 15% per year, which equation can find the value of the car on December 31, 2017?

Answer 1

The pattern is pretty clear. After $n$ years, in $200n$ the price will be:

$a_n= a_0(0.85)^{n-1}$

Explanation:

Answer 2

Equation that can find the value of the car on December 31, 2017 is:

A= 25000*(1-0.15)^7 and the value of car after 7 years is $8014.427.

Explanation:

Price of car = $ 25,000

Rate of depreciation = 15 %

Formula used:

A= P(1-r)^n

where p= price of car

A= new price of car after depreciation

r = rate of depreciation i.e. 15/100 = 0.15

n= time in years 2017 - 2010 = 7 years

Putting values in formula:

A= 25000*(1-0.15)^7

A= 25000*(0.85)^7

A= $8014.427

So, Equation that can find the value of the car on December 31, 2017 is:

A= 25000*(1-0.15)^7 and the value of car after 7 years is $8014.427.