Answer: 361000
Explanation:
In 2014, the worth of the car will be:
= 400000 - (5% × 400000)
= 400000 - (0.05 × 400000)
= 400000 - 20000
= 380000
In 2015, the worth of the car will be:
= 380000 - (5% × 380000)
= 380000 - (0.05 × 380000)
= 380000 - 19000
= 361000
We can also use the formula:
A = P × (1 - r/100)^n
A = 400000 × (1 - 5/100)²
A= 400000 × (1 - 0.05)²
A = 400000 × (0.95)²
A = 400000 × 0.9025
A = 361000
The worth of the car will be 361000