Question

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?(1 point)
Responses

$49,278.25
$49,278.25

$10,870.78
$10,870.78

$9240.16
$9240.16

$12,789.15

Answer 1

Value = 24,500*(0.85)^5 = 24,500*(0.4437053125) ≈ $10,870.78.