Asked by Pat

In 2004, your family bought a new car for $15,000. Each year the value of the car is decreasing approximately 15% per year. Your father plans to keep the car 5 years before he buys another new car. What will be the value of the car when he's ready to trade?

What is the formula?

Answers

Answered by Kitty
First Year = 15000 / 100 * 15 = 2250 (minus from 15000 = 12750)

Second year = 12750 / 100 * 15 = 1912.50 (minus from 12750 = 10837.50

Third Year = 10837.50 / 100 * 15 = 1625.63 (minus from 10837.50 = 9211.87)

Continue for year four and five :)
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