Question

Jesse bought a car for $25,000. The car

depreciates approximately 10% of its value
each year. What will the car be worth in 5
years?

Answer 1

Approximately $14,760 to the nearest 10 dollars.

Explanation:

After each year passes the car is worth 100-10 = 90% of the previous year.

So the equation is

A = 25000(0.90)^t where A is the value of the car and t = the time in years.

So in 5 years:

A = 25000(0.90)^5

= 14762.25