Question

Alex purchased a new car for $28,000. The car's value depreciates 7.25% each year. What will be the value of the car 5 years after it is purchased? Round your answer to the nearest dollar.

Answer 1

7.25/100 = 0.0725 => 0.0725 × 28,000 = 2,030$
2030 × 5 = 10,150$ => 28,000 + 10,150 = 38,150$

Answer 2

28,000x0.0725=2030 per year, so 2030x5= 10,150

then, 28,000-10150= 17,850