Question

Jojo bought a used car for $3,000. The value of the car depreciates at the rate of 5% a year. what is the car's value after 3 years?

Answer 1

The value of Jojo's used car after 3 years, with an annual depreciation rate of 5%, will be approximately $2,572.13.

Step-by-step explanation:

Jojo bought a used car for $3,000. The car's value depreciates at the rate of 5% per year. To calculate the car's value after 3 years, you can use the formula for exponential decay, which is:

V = P(1 - r)n

Where:

• V is the future value of the car after n years.
• P is the initial value of the car (which is $3,000).
• r is the annual depreciation rate (which is 0.05).
• n is the number of years (which is 3).

Plugging in the numbers, we get:

V = $3,000(1 - 0.05)3

V = $3,000(0.95)3

V ≈ $3,000(0.857375)

V ≈ $2,572.13

So, after 3 years, the car's value will be approximately $2,572.13.