Question

A car is purchased for $25,500. After each year, the resale value decreases by 30%. What will the resale value be after 3 years?

Use the calculator provided and round your answer to the nearest dollar.

Answer 1

The resale value of the car will be $8,746.50 after 3 years.

Step-by-step explanation:

To find the resale value after 3 years, we need to calculate the value after each year and then multiply it by the decrease rate of 30%. After 1 year, the resale value will be $25,500 - (30% of $25,500). After 2 years, the resale value will be the previous year's value - (30% of the previous year's value). After 3 years, the resale value will be the previous year's value - (30% of the previous year's value). Using this pattern, we can calculate the resale value for each year.

Year 1: $25,500 - (30% of $25,500) = $25,500 - $7,650 = $17,850

Year 2: $17,850 - (30% of $17,850) = $17,850 - $5,355 = $12,495

Year 3: $12,495 - (30% of $12,495) = $12,495 - $3,748.50 = $8,746.50

Answer 2

$2,550

Step-by-step explanation:

30% x 3 = 90% = 0.9

$25,500 x 0.9 = 22,950

$25,500 - $22,950 = $2,550