Question

The value of a dirt bike decreases by 20% each year. If you purchased this dirt bike today for $500, to the nearest dollar how much would the bike be worth 5 years later?

Answer 1

The dirt bike would be worth approximately $164 to the nearest dollar after 5 years.

Step-by-step explanation:

To find the value of the dirt bike 5 years later, we need to calculate its value after each year. Since the value decreases by 20% each year, we can use the formula:

Value after n years = Initial value * (1 - rate of decrease)^n

Plugging in the values, we get:

Value after 5 years = $500 * (1 - 0.2)^5 = $500 * 0.8^5 = $500 * 0.32768 = $163.84

Therefore, the bike would be worth approximately $164 to the nearest dollar after 5 years.

Answer 2

The bike is now $500. The price goes down by 20% each year.

500(0.20) = 100

The bike decreases by $100 each year.

After 5 years at $100 less per year, the bike will be $0.00.