Question

Yassar has purchased a $30,000 car for his business. The car depreciates at 30%

every year. {Depreciation means the value of the car decreases by that percent each
year).Calculate the value of the car to the nearest cent at the end of the 5th
year.
A. $5,042.10
B. $111.387.90
C. $21.000.00
D. $39,346.85

Answer 1

A

Explanation:

30% of 30000 is 9000, 30000-9000=21000 (1 year)

30% of 21000 is 6300, 21000-6300=14700 (2 years)

30% of 14700 is 4410, 14700-4410= 10290 (3 years)

30% of 10290 is 3087, 10290-3097= 7203 (4 years)

30% of 7203 is 2160.9, 7203-2160.9= 5042.1 (5 years)