Answer:
After 10 years that Lisa has bought the car, her car will have an approximate value of:
Explanation:
As you can identify in the exercise, every time a year passes, the value of the car has a decrease of 6% of its value that year, so what you should do is take the initial value of $23,000 and multiply it by 94% (the remaining value of its price), then take this result and multiply it by 94% and so on 10 occasions (since they are ten years of depreciation) as I show you below:
- Value after depreciation = 23,000 * 94% = 21,620
- Value after depreciation = 21,620 * 94% = 20,322.8
- Value after depreciation = 20,322.8 * 94% = 19,103,432
- Value after depreciation = 19,103,432 * 94% = 17,957,226
- Value after depreciation = 17,957,226 * 94% = 16,879,793
- Value after depreciation = 16,879,793 * 94% = 15,867,005
- Value after depreciation = 15,867,005 * 94% = 14,914,985
- Value after depreciation = 14,914,985 * 94% = 14,020,086
- Value after depreciation = 14,020,086 * 94% = 13,178,880
- Value after depreciation = 13,178,880 * 94% = 12,388,148
Therefore, it would have a value of approximately $12,388.15 after ten years of its purchase.