Question

Mr. Henry buys a car for $18,000 value of the car decreases about 15% each year after four years what will the approximate value of the Caribbean

Answer 1

y=a(b)^x
y=$18,000(.85)^4
y=$9,396.11
Approximate value in after four years is $9,396.11

Answer 2

Initial Value of car = $18,000

And the value decreases at about 15% per year.

it means P=$18,000

r= 15% = 0.15

For decreasing , we have a formula

`A=P(1-r)^(t)`

Lets plug the values in the formula

`A=18,000(1-0.15)^(t)`

Now it says to find the value of car after four years, So plug t=4

`A=18,000(1-0.15)^(4)`

`A=18,000(0.85)^(4)`

`A=18,000(0.52200625)`

`A=9396.1125`

So the value of car after 4 years will be $9396.1125