The original purchase price of a car is 12,000. Each year, its value depreciates (loses value) by 5%. Three years after its purchase, what is the value of the car?

Question

asked Dec 24, 2023 107k views

2 Answers

Dunfield · Answer 1 · 2023-12-26T17:45:56+0000

P(1-r)^n

r = decimal form of the interest rate percent

n = amount of years

principal times (1 - decimal form of the interest rate percent) to the (amount of years) power

12000 (1-.05)^3

use PEMDAS

12000 times (.95)^3

12000 times .857375 =

ANSWER:

10288.5