Question

Manny purchased a new car thos year for 20,500 dollars. The car is expected to depreciate at an annaul rate of 16%. About how much will Manny's car be worth after 6 years ? Round to the nearest dollar. ANSWERS : A)8602 B)7202 C)50,278 D)49,946

Answer 1

it will loose 16% every year
an easy ways is to do this

percetn meanns parets out of 100 so
16%=16/100=0.16
100-16=84 so
it will be worth 20,500 times 0.84 times 0.84 times 0.84 times 0.84 times 0.84 times 0.84 after six years=7201.61 which is rounded up to 7202

the answer is B 7202