Question

The value of a car is $30,000 and depreciates at a rate of 6.5% each year.

What will the value of the car be after 5 years? Round to the nearest cent.

Answer 1

Answer:$20250

Explanation:

6.5% of 30000

6.5/100 x 30000

(6.5 x 30000)/100

195000/100=1950

First year depreciation 30000-1950=28050

Second year=28050-1950=26100

Third year=26100-1950=24150

Fourth year=24150-1950=22200

Fifth year=22200-1950=20250