Suppose you buy a car with a value of 12,500. Each year your car depreciates by 3.6%. How much will your car be worth in 5 years

Question

Mathematics

Maximillian Brady

18 October, 06:19

Suppose you buy a car with a value of 12,500. Each year your car depreciates by 3.6%. How much will your car be worth in 5 years

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Answers (1)

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Miriam · Answer 1

So the multiplier for decreasing by 3.6% is 0.964 (1 - 0.036)

Times the value by the multiplier to the power of 5, since that is the number of years you want.

12,500 x 0.964^5 = 10,406.27 (2dp)