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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17-03-2020
Mathematics

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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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TenzinTsesang TenzinTsesang · Answer 1 · 2020-03-17T20:26:49+01:00

TenzinTsesang TenzinTsesang

17-03-2020

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

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