Solve the following problem:

Kate bought a car for $20,000. A study shows that a car will depreciate (go DOWN in value) by 15% each year. How much is Kate's car worth after 5 years?

a) Formula used: ___________________________________

b) Substitute values: _________________________________

c) Final answer: _____________________________________

d) Does this final answer make sense compared to the original cost of the car? Why?

e) DESCRIBE (using a complete sentence or two) how you can solve this problem graphically.

3 answers

please help asap!!!!

Since you are taking off 15% each year, at the end of each your you will have 85% or .85 of the previous years amount.

so after 5 years:
20000(.85)^5
= ...

plug in your answers where needed.

right so whats the formula?