Question

Your car cost $42,500 when you bought it in 2015. The value of your car decreases by 15 percent every year. How much would it be worth after ten years? Round to the nearest cent.

a) $18,125.86
b) $19,687.50
c) $22,737.35
d) $25,000.00

Answer 1

The car would be worth approximately $18,125.86 after ten years.

Step-by-step explanation:

To find the value of the car after ten years, we can use the formula V = P(1 - r)^n, where V is the final value, P is the initial value, r is the rate of decrease, and n is the number of years. In this case, P = $42,500, r = 15% or 0.15, and n = 10. Plugging in these values, we get V = $42,500(1 - 0.15)^10 = $18,125.86. Therefore, the car would be worth approximately $18,125.86 after ten years.