Question

Tonya buys a car for $23,000. The value of the car decreases at a rate of 3% per year. How much will the car be worth in 5 years?

Answer 1

Tonya buys a car worth 23,000 dollars. It decreases its value by 3% every year. Let's find out the cost of the car after 5 years.
=> 23 000 dollars * .03 = 690 dollars
=> 23 000 - 690 = 22 310 dollars for 1st year
=> 22 310 dollars * .03 = 669.3 dollars
=> 22 310 dollars - 669.3 dollars = 21 640.7 dollars 2nd year.
=> 21 640.7 dollars * .03 = 649.221 dollars
=> 21 640.7 dollars - 649.221 dollars = 20 991.48 dollars for 3rd year
=> 20 991.48 dollars * .03 = 629.74 dollars
=> 20 991.48 dollars - 629.74 dollars = 20 361.74 dollars for 4th year
=> 20 361.74 dollars * .03 = 610.85 dollars
=> 20 361.74 dollars - 610.85 dollars = -19 750.89 dollars for 5th year