The value of a new car purchased for $24,950 decreases each year by 12%. How much will the car be worth in 7 years?

Answers:

After 7 years the car is worth $10,196 (,46)

Explanation:

Year 1: $24,950•0,88=21,956

Year 2: $21,956•0,88=19,321 (,28)

Year 3: $19,321 (,28) •0,88=17,002 (,73)

Year 4: $17,002 (,73) •0,88=14,962 (,40)

Year 5: $14,962 (,40) •0,88=13,166 (,91)

Year 6: $13,166 (,91) •0,88=11,586 (,88)

Year 7: $11,586 (,88) •0,88=10,196 (,46)