Question

I am not sure how to do this can I get some help please

Answer 1

A car depreciates at 2.5%. If we subtract this value from 100%, we have

`100-2.5=97.5`

This means that every year, the car value will be 97.5% the value of the previous year. To find 97.5% of a quantity we multiply our quantity by 97.5 and divide by 100, or, written in decimals, this is the same as multiplying by 0.975. Then, every year the car depreciates, we're multiplying again by 0.975.

The starting value of the car is 50,000. After 6 years of depreciation at 2.5%, we multiplied this value by 0.975 six times, or, 0.975 to the sixth power.

`50,000*(0.975)^6=42,953.4150513\ldots\approx42,953.42`

In 6 years, the value of the car will be 42,953.42.