Problema Solution

The value of a car is decreasing by 8% per year. If the car is worth 11,236 today what's the worth in two years

Answer provided by our tutors

the car is worth x = $11,236 today


after the first year the new value is: x - 0.08x = 0.92x


after the second year the value is: 0.92x - 0.08*0.92x = ((0.92)^2)*x


plug x = 11,236 in the ((0.92)^2)*x and we get


((0.92)^2)*11236 = $9,510.1504


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in two years the car will be worth $9,510.1504.