Problema Solution
The value of a new automobile decreases 20% per year. Find its value after: a. 1 year b. 2 years c. 3 years d. 10 years.
Answer provided by our tutors
Original price of automobile = P
After 1 year, the price of the car is P1 = P*0.8
After 2 years, the price of the car is P2 = P1*0.8 = P*0.82 = P*0.8*0.8
After 3 years, the price of the car is P3 = P2*0.8 = P*0.83 = P*0.8*0.8*0.8
After 10 years the price of the car is P10 = P*0.810