Problema Solution
Brought a new car for 18,000 once the car is driven off the lot the car depreciates in value 15% each year. How much will the car be worth in 5 years? round to the nearest dollar.
Answer provided by our tutors
New car: $18,000
After 1 year: 0.75*18,000
After 2 years: 0.75*0.75*18,000
......
After 5 years: (0.75^5)*18,000 = $4,271 rounded to the nearest dollar
In 5 years the car will be worth $4,271.