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Suppose a new car that costs $25,000 depreciates by 12% each year. In about how many years will the car be worth $15,000? Use the equation 15,000 = (25,000)(0.88)x and round the value of x to the nearest year

User Daud
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4 votes
X=log(15,000÷25,000)÷log(0.88)
x=3.9=4years
User Laverick
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3 votes

Answer:

4 years.

Explanation:

Given : A new car that costs $25,000 depreciates by 12% each year.

To Find: In about how many years will the car be worth $15,000?

Solution:

Principal = $25000

Rate of decrease = 12%

Amount = $15000

Equation:
15,000 = (25,000)(0.88)^x

x will give the years in after which car value will be $15000

So,
15,000 = (25,000)(0.88)^x


(15000)/(25000)=(0.88)^x


0.6=(0.88)^x


3.99603=x

Thus in about 4 years car value will be $15,000.

User Greg Andora
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