Question

A car is purchased for $21,000. After each year, the resale value decreases by 35%. What will the

resale value be after 3 years?

Answer 1

8859.5

Explanation:

if it decreases with 35% then after each year it is worth only 75% of its previous value. so after one year it is worth 75%*21000=15750. the next year it is 75%*15750=11812.2. and after the 3rd year itnis worth 75%*11812.2=8859.5