A car is currently worth $28000. Each year is depreciates(loses value) by 15%. What will the car be worth in 5years?

2 Answers
Nov 22, 2016

Answer:

Worth after 5 years is # $12423.75#

Explanation:

Current worth is #C=$28000#

Depreciation rate is #D=15%#

Time in years is #T=5#

Worth (W) after 5 years : # W=C(1-D/100)^T=2800*(1-15/100)^5=$12423.75# [Ans]

Nov 22, 2016

Answer:

$12,423.74(app)

Explanation:

We know the depreciation formula, #A = P(1 - r/100)^n# where A = value of the car after 5 years, P = Current value of the car, r = rate of interest and n = no. of years.

so, #A = 28,000(1 - 15/100)^5#
or, #A = 28,000 * (85/100)^5#
or, #A = 28,000 *85/100*85/100*85/100*85/100*85/100#
or, #A = [7*17*17*17*17*17]/800 = [9,938,999]/800 = 12,423.74(app)#