To find the value of the car after five years, you need to apply the 15% decrease in value each year for a total of five years.
First, calculate the value of the car after the first year: $24,500 - ($24,500 * 0.15) = $20,825.
Then, calculate the value of the car after the second year: $20,825 - ($20,825 * 0.15) = $17,701.25.
Next, calculate the value of the car after the third year: $17,701.25 - ($17,701.25 * 0.15) = $15,046.06.
After that, calculate the value of the car after the fourth year: $15,046.06 - ($15,046.06 * 0.15) = $12,789.15.
Finally, calculate the value of the car after the fifth year: $12,789.15 - ($12,789.15 * 0.15) = $10,870.78.
Therefore, the value of the car after five years is $10,870.78.
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?
$10,870.78
$10,870.78
$49,278.25
$49,278.25
$12,789.15
$12,789.15
$9240.16
1 answer