Question

In the year 2005, a person bought a new car for $24500. For each consecutive year

after that, the value of the car depreciated by 9%. How much would the car be worth
in the year 2008, to the nearest hundred dollars?

Answer 1

18500

Explanation:

Percent decrease:

\text{Multiply by }(1-r)=(1-0.09)=(0.91)

Multiply by (1−r)=(1−0.09)=(0.91)

2005: \color{green}{24500}

2005:24500

2006: \color{green}{24500} (0.91) = \color{blue}{22295}

2006:24500(0.91)=22295

2007: \color{blue}{22295} (0.91) = \color{red}{20288.45}

2007:22295(0.91)=20288.45

2008: \color{red}{20288.45} (0.91) = \color{orange}{18462.49}

2008:20288.45(0.91)=18462.49

\text{Car value in 2008:}

Car value in 2008:

\$18500

$18500

Answer 2

$20090

because, in three years it would have depreciated by 18% (9%*3=18) so you would subtract 18% off of $24500