Question

A car is purchased for $27,500. After each year, the resale value decreases by 35%. What will the resale value be after 5 years?

Answer 1

≈ $ 3190

Explanation:

What will the resale value be after 5 years ?

$27500 x (1 - 0.35) x 5 =

= $27500 x 0.65⁵

= $27500 x (≈ 0.116)

≈ $ 3190

Answer 2

$3,190.80

Explanation:

yr 1:

27500 x .35 = 9625

27500 - 9625 = 17875

yr 2:

17875 x .35 = 6256.25

17875 - 6256.25 = 11618.75

yr 3:

11618.75 x .35 = 4066.5625

11618.75 - 4066.5625 = 7552.1875

yr 4:

7552.1875 x .35 = 2643.265625

7552.1875 - 2643.265625 = 4908.921875

yr 5:

4908.921875 x .35 = 1718.12265625

4908.921875 - 1718.12265625 = 3190.79921875