a car deceased in value by 25% in the first year. purchased for $28,000, what is the car worth today.

1 answer:

4 0

Try this: Principal times (1+interest rate as a decimal fraction)^(number of yrs)

In this case, Principal = $28,000; interest rate = -0.25; # of years = 1

So Decrease in value = $28,000 (0.75)^1 = $21,000.

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