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
Christian J.
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)#

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