A $30,000 car depreciates in value 12% a year. How much will the car be worth in 5 years?

Question

Mathematics

Danica Daugherty

1 April, 23:23

A $30,000 car depreciates in value 12% a year. How much will the car be worth in 5 years?

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Answers (2)

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Braylon Crane · Answer 1

Braylon Crane 2 April, 00:24

0

It will be worth $15,832

Tucker Downs · Answer 2

F=ir^t, f=final value, i=initial value, r=rate, t=time, in this case:

f=30000 ((100-12) / 100) ^t

f=30000 (0.88) ^t so

f (5) = 30000 (0.88) ^5

f (5) = $15831.96 to nearest cent