A car depreciates at a rate of 30% per year. How much will a $20000 car be worth after 5 years?
- print Print
- list Cite
Expert Answers
justaguide
| Certified Educator
calendarEducator since 2010
write12,544 answers
starTop subjects are Math, Science, and Business
The car depreciates by 30% every year. So if its initial value is V, the next year it will be V*(1 - 30%) = V*(1 - 0.3) = V*0.7.
The...
(The entire section contains 70 words.)
Unlock This Answer Now
Start your 48-hour free trial to unlock this answer and thousands more. Enjoy eNotes ad-free and cancel anytime.
Related Questions
- If a car's cost, when new, is $15,000 and the rate of depreciation is 30%, how much will the car...
- 1 Educator Answer
- The value of a car after it is purchased depreciates according to the formula V(n)=25000(0.85)^n,...
- 1 Educator Answer
- Help with difficult algebra word problem!? A new car begins to decrease in value from the moment...
- 1 Educator Answer
- Calculate the approximate number of years it will take for real GDP per person to double if an...
- 1 Educator Answer
- The estimated resale value R (in dollars) of a company car after t years is given by R(t)=...
- 1 Educator Answer
kiran76 | Student
Many Thanks!
check Approved by eNotes Editorial
neela | Student
The annual depreciation of the car is 30%.
So after the first year the car value is = $(20000-20000(30/100)} = $20000*(0.7).
At the end if the 2nd year, the car value after depreciation is $20000(0.7).
Similarlly at the end the 3rd , 4th and 5th years the car value becomes $20000*(0.7)^3 , $20000*(0.7)^4 and $2000*(0.7)^5 , respectively after depreciation.
check Approved by eNotes Editorial
Student Answers