Question

You buy a used car for $20,000. It depreciates at the rate of 21% per year. Find the value of the car for the given years.

A. 5 years.

B. 8 years.

Answer 1

A. 5 years

Explanation:

21% of 20,000 is 4200, mutiply that by 5 and get $20,000

Answer 2

a is 840 ,b is 525

Explanation:

At the end of each year, its value is down to 79%, which is 0.79 times its value at the start of the year. Keep this up for n years and the value is

V(n) = $20,000 (0.79)n,

where n is the number of years elapsed from when the value was $20,000. Just plug in n=5 and n=8, evaluate, and get your 2 answers.