Question

A car is purchased for $15,000. Each year it loses 20% of its value. After how many years will the car be worth $4400 or less?

Answer 1

It will take approximately 6 years for the car to be worth $4400 or less.

Step-by-step explanation:

To determine the number of years it will take for the car to be worth $4400 or less, we need to calculate the value of the car after each year of depreciation. We can start with the initial value of $15,000 and multiply it by 0.8 (1 - 20%) to find the new value after one year. We continue this process until the value of the car is $4400 or less.

Let's calculate the value of the car after each year of depreciation:

1. Year 1: $15,000 * 0.8 = $12,000
2. Year 2: $12,000 * 0.8 = $9,600
3. Year 3: $9,600 * 0.8 = $7,680
4. Year 4: $7,680 * 0.8 = $6,144
5. Year 5: $6,144 * 0.8 = $4,915.20
6. Year 6: $4,915.20 * 0.8 = $3,932.16

After 6 years, the car will be worth $3,932.16, which is less than $4400. So, it will take approximately 6 years for the car to be worth $4400 or less.