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

$9240.16
$9240.16

$10,870.78
$10,870.78

$12,789.15
$12,789.15

$49,278.25
$49,278.25

Answer 1

Value = 24500*(0.85)^5.
(0.85)^5 ≈ 0.4437053125, so value ≈ 24500 * 0.4437053125 = $10,870.78.

Answer: $10,870.78