Question

Michelle buys a motorcycle for $10,000. The motorcycle loses 20% of its value each year. The depreciation of the motorcycle is shown by the graph. After how many years is the value of the motorcycle worth $6400?

Answer 1

price after 1st year = 10000 * 80/100
= 10000 * 0.8
Price after nth year = 10000 * 0.8^n

10000 * 0.8^n = 6400
0.8^n = 0.64
0.8^n = 0.8^2

so n = 2

After 2 years, the price of motorcycle will be $6400