Question

The family owns a car that is currently worth $16,000. Each year, the car depreciates in value by 10%. What will the car be worth in 5 years?

Options:

a) $10,240

b) $8,192

c) $6,553.60

d) $5,184.00

Answer 1

The car will be worth $10,240 in 5 years.

Step-by-step explanation:

To find the value of the car in 5 years, we need to multiply its current value by the depreciation rate each year. The depreciation rate is 10%, so the car's value after 1 year would be $16,000 - 10% of $16,000. We can continue this process for 5 years to find that the car will be worth $10,240.