Question

You buy a new car for $33 560. The average new car depreciation in value by about 18% each year. Approximately how much will your car be worth in 5 years?

Answer 1

Worth of car after five years
`= 12442.03` dollars

Explanation:

Given -

Price of the new car
`= 33560` dollars

Depreciation rate
`= 18` % on the price value of car each year

The value of car after the deduction of depreciation value after 1st year

`33560 - (18)/(100) * 33560\\27519.2`

The value of car after the deduction of depreciation value after 2nd year

`27519.2 - (18)/(100) * 27519.2\\22565.74`

The value of car after the deduction of depreciation value after 3rd year

`22565.74 - (18)/(100) * 22565.74\\18503.91`

The value of car after the deduction of depreciation value after 4th year

`18503.91 - (18)/(100) * 18503.91\\15173.21`

The value of car after the deduction of depreciation value after 5th year

`15173.21 - (18)/(100) * 15173.21\\12442.03`

Worth of car after five years
`= 12442.03` dollars