Question

A new car sells for $25,000. The value of the car decreases by 15% each year. What is the approximate value of the car 5 years after it is purchased? 25,000 (1 minus 0.15) Superscript 5, or approximately $11,093 25,000 minus 1500 (5), or approximately $17,500 25,000 (0.15) Superscript 5, or approximately $18,984 25,000 minus left-bracket (100 minus 15) (5) Right-bracket, or approximately $24,575

Answer 1

It's A, $11,093

Explanation:

Took the test on Edge

Answer 2

A. 25,000 (1 minus 0.15) Superscript 5, or approximately $11,093

Explanation:

A. 25,000 (1 minus 0.15) Superscript 5, or approximately $11,093

B. 25,000 minus 1500 (5), or approximately $17,500

C. 25,000 (0.15) Superscript 5, or approximately $18,984

D. 25,000 minus left-bracket (100 minus 15) (5) Right-bracket, or approximately $24,575

Value of the car = $25,000

Percentage decrease per year = 15%

Value after 5 years

Total percentage value of the car = 100%

Percentage value remaining each year = (100% - 15%)

= (1 - 0.15)

Decrease of the car in the next 5 years = $25,000(1 - 0.15)^5

= $25,000(0.85)^5

= $25,000(0.4437053125)

= $11,092.6328125

Approximately = $11.093

Value of the car in the next 5 years = $25,000 - $11,093

= $13,907