A family buys a car for $20,000. the value of the car decreases about 20% each year. after 6 years, the family decides to sell the car. should they sell it for $4000?

Question

Mathematics

Nicole Mann

6 July, 16:15

A family buys a car for $20,000. the value of the car decreases about 20% each year. after 6 years, the family decides to sell the car. should they sell it for $4000?

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Answers (2)

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Natalee Stokes · Answer 1

Actually heres the breakdown ...

year 1 20,000

year 2 decreased 20% is 16,666

year 3 decreased 20% is 13,888

year 4 decreased 20% is 11,574

year 5 decreased 20% is 9,645

year 6 decreased 20% is 8,037

so selling it for $4000 is a major loss on their end so they should NOT sell at that price.

Trinity Garza · Answer 2

No, the car is losing value not gaining it.