The original purchase price of a car is $12,000. Each year, its value depreciates by 5%. Three Years after its purchase, what is the value of the car?

(a) $10,288.50
(b) $10,830
(c) $13,891.50
(d) $1.50

1 Answer
Jan 10, 2018

color(red)A
"Worth" = color(blue)($10,288.50)

Explanation:

To find the worth of the car after a certain amount of time, use this formula:
"Worth" = "InitialPrice"(1 - "Rate")^"time"
"Worth" = 12000(1-0.05)^3
"Worth" = color(blue)($10,288.50)