Question

Leonardo purchases a car for $18,995. The car depreciates at a rate of 18% annually. After 6 years, Manuel offers to buy the car for $4500. Should Leonardo sell the car to Manuel? Explain.​

Answer 1

18,995 × 0.82^(6) = $5,774 so he should not sell

if the percentage decrease is 18% then do 100% - 18% which is 82. divide by 100 = 0.82. if it does this for 6 years then do 18,995 × 0.82^(6) because it's 6 years. the number is larger than Manuel's offer therefore he shouldnt sell