Question

A car is purchased for $18,000. After each year , the resale value decreases by 35%. What will the resale value be after 3 years?

Answer 1

The answer should be 4943.25

Explanation:

Answer 2

The resale value after 3 years = $ 4,943.25

Explanation:

Cost price of car = $ 18,000

loss = 35 %

Number of years = 3 years

The reduced value for first year = $ 18,000 × (
`(35)/(100)` ) × 1

= $ 180 × 35 × 1

= $ 6,300

The resale value for first year = $ 18,000 - $ 6,300

=$ 11 , 700

The reduced value for 2nd year = $ 11,700 ×(
`(35)/(100)` )

= $ 117 × 35 × 1

=$ 4,095

The resale value for 2nd year = $ 11,700 - $ 4,095

= $ 7,605

The reduced value for 3 rd year = $ 7,065 × (
`(35)/(100)`)

=$ 2661.75

The resale value for 3rd year = $ 7,605 -$ 2661.75

= $ 4,943.25

The resale value after 3 years = $ 4,943.25