Question

Each year a car is worth 8% less than it was the year before. After 3 years, the car is worth $19,311.46. What was the original cost of the car?

Answer 1

$24,800

Explanation:

If a car is worth 8% less after one year, then it is worth 92% of the original value.

original value = x

after 1 year: 0.92x

after 2 years: 0.92(0.92x)

after 3 years: 0.92(0.92(0.92x))

0.92³x = $19,311.46

x = $19,311.46/0.92³

x = $24,800