Problema Solution
A car was bought for $24,000.The value of the depreciates goes down by 17%every year how much will the car be worth after 5 years?
Answer provided by our tutors
The car at the moment is worth: $24,000
After 1 year the value is down to: $24,000 - 0.17*$24,000 = (1 - 0.17)*$24,000 = 0.83*$24,000
After 2 years the value will be: 0.83*0.83*$24,000 = 0.83^2*$24,000
........
After 5 years the value will be: 0.83^5*$24,000 = $9,453.70