Question

Using your calculator, determine the value

of the car in 2020.
y = 20,000(0.85) ¹0
(Be careful rounding)

Answer 1

Answer: $7,291.14

Explanation: To calculate the value of the car in 2020, you can use the formula y = 20,000(0.85)^10.

Here, y represents the value of the car in 2020, 20,000 is the initial value of the car, and 0.85 is the depreciation rate. The exponent 10 represents the number of years that have passed, so the formula calculates the value of the car after 10 years by multiplying the initial value by the depreciation rate raised to the power of 10.

To perform this calculation, you can calculate 0.85^10 first, and then multiply that result by 20,000:

0.85^10 = (0.85)(0.85)(0.85)...(0.85) (10 times)

= 0.364569708

y = 20,000 * 0.364569708

= 7,291. 139416

So the value of the car in 2020 would be approximately $7,291.14.