Question

Lydia bought a car for 20,000. It is expected to depreciate at a rate of 10% per year. What will be the value of the car in 2 years? use y=a(1-r)^t and round to the nearest dollar

Answer 1

$16,200

Explanation:

y = 20,000(1 - 0.1)^2

y = 20,000(0.9)^2

y = 20,000(0.81)

y = 16,200

$16,200