Question

1. If I have a car that cost 30,000 and every year it loses value at 20% a year, then what would the value of

the car be after 5 years?
Growth
rate

Answer 1

$9,830.40

Explanation:

1st year--$30,000.00 x .20=$6,000.00= $30,000.00 - $6,000.00 =$24,000.00

2nd year--$24,000.00 x .20=$4 800.00=$24,000.00 -$4,800.00=$19 200.00

3rd year---$19,200.00 x .20 =$3,840.00= $19,200.00 - $3,840.00 = $15,360.00

4th year---$15,360.00 x .20=$3,072.00=$15,360.00 - $3,072.00=$12,288.00

5th year $12,288.00 x .20=$2,457.60=$12,288.00 - $2,457.60 =$9,830.40