Question

The original value of a car is $15,000, and it depreciates (loses value) by 20%each year. What is the value of the car after three years?

Answer 1

Given

The original value of a car is $15,000, and it depreciates (loses value) by 20% each year.

To find:

What is the value of the car after three years?

Step-by-step explanation:

It is given that,

The original value of a car is $15,000, and it depreciates (loses value) by 20% each year.

That implies,

`\begin{gathered} Value\text{ }of\text{ }the\text{ }car\text{ }after\text{ }3\text{ }years=15000*(1-(20)/(100))^3 \\ =15000*(1-(1)/(5))^3 \\ =7680 \end{gathered}`

Hence, the value of the car after three years is $7680.