A car is purchased for

$22,500

. After each year, the resale value decreases by

25%

. What will the resale value be after

5

years?

Question

Mathematics

Kaeden Deleon

27 September, 04:14

A car is purchased for

$22,500

. After each year, the resale value decreases by

25%

. What will the resale value be after

5

years?

+5

Answers (1)

Know the Answer?

Haley · Answer 1

Not sure if you've learned this but we can use exponents to make an equation.

y = cn^x

with y being the new price, c being the original, n being the rate of increase (or decrease) and x being years. This use of exponents has many names in economics and calculus but i wont bore you with that.

in our case:

we can find n by finding how much will be left of the price.

1.00 - 0.25 = 0.75

f (x) = (22500) (0.75) ^x

f (5) = (22500) (0.75) ^5

=$5339.35

A car is purchased for$22,500. After each year, the resale value decreases by25%. What will the resale value be after5years?

A car is purchased for

$22,500

. After each year, the resale value decreases by

25%

. What will the resale value be after

5

years?