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The original value of a car is $15,000, and it depreciates (loses value) by 20% each year. What is the value of the car after three years?. . A. $120. B. $9, 600. C. $44, 280. D. $7, 680

2 Answers

5 votes

Answer:

D or $7680

Step-by-step explanation:

User Fatma
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6 votes
The value of car after three years is equal to the original price times the multiplier raised to a 3 (because of number of years). This is shown in the equation below,
V = P x (1 - r)^3
Substituting the given values,
V = ($15,000) x (1 - 0.2)^3
The value of the car after three years is equal to $7,680. The answer is letter D.
User Ahmadali Shafiee
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7.8k points