Question

Rachel buys a car for $48,500. Her car immediately starts depreciating, losing 25% of its

value every year. How much will the car be worth in 6 years?
If necessary, round your answer to the nearest cent.

HINT This is a Growth and Decay Problem. Are we increasing or decrea sin g?

A : $7,783.53
B : 0 $8,631.96
C : $85, 845
D : $185,012.82

Answer 1

B. $8,631.96

Explanation:

Because it is the "Correct Answer"

Answer 2

B. $8,631.96

Explanation:

Create an equation where x is the number of years and y is the car's value

y = 48500(0.75)^x

Plug in 6 as x, since the question asks for the value in 6 years, and simplify:

y = 48500(0.75)^6

y = 8631.96

So, in 6 years, the car will be worth $8,631.96

The correct answer is B. $8,631.96