Every year that a car is on the road it loses value. If a car loses 15 percent of its value each year and its beginning value is $24,500, what will the value of the car be after five years?

Answer 1

To find the value of the car after five years, we need to calculate 15 percent of the beginning value each year and subtract it from the previous year's value.

Year 1: $24,500 - 15% of $24,500 = $24,500 - $3,675 = $20,825

Year 2: $20,825 - 15% of $20,825 = $20,825 - $3,123.75 = $17,701.25

Year 3: $17,701.25 - 15% of $17,701.25 = $17,701.25 - $2,655.19 = $15,046.06

Year 4: $15,046.06 - 15% of $15,046.06 = $15,046.06 - $2,256.91 = $12,789.15

Year 5: $12,789.15 - 15% of $12,789.15 = $12,789.15 - $1,918.37 = $10,870.78

After five years, the value of the car will be $10,870.78.