The value of a car is $30,000. It loses 6.5% of its value each year. What will the value of the car be after 5 years?

Question

Mathematics

Janae Finley

10 November, 16:42

The value of a car is $30,000. It loses 6.5% of its value each year. What will the value of the car be after 5 years?

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Izaiah Simmons · Answer 1

Decay equation = P * (1-r) ^t

P = Principal amount = $30,000

r = rate=0.065

t = time (in years) = 5

x=30,000 (1-0.065) ^5

The value of the car in 5 years is approx. $21,438