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)

$10,870.78

$49,278.25

$12,789.15

$9240.16

Answer 1

Each year the car keeps 85% of its value, so after 5 years its value is
24500 × (0.85)^5 = 24500 × 0.4437053125 ≈ $10,870.78.

Answer: $10,870.78.