Question

A car is purchased for S15,500. After each year, the resale value decreases by 20%. What will the resale value be after 3 years?

Use the calculator provided and round your answer to the nearest dollar

Answer 1

3 years -> value decreases by 20% 3 times

20% -> value is 80% of the original price

1st year value (after 20% decrease) = S15,500×
`(80)/(100)`

= S12,400

2nd year value (after 20% decrease) = S12,400×
`(80)/(100)`

= S9,920

3rd year value (after 20% decrease) = S9,920×
`(80)/(100)`

= S7,936