suppose that $2000 is loaned at a rate of 18%, compounded monthly. Assuming that no payments are made, find the amount owed afte
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Hi! I'm happy to help!
To solve this, we need to first find how much the car value decreased.
The car started at $32,000, but dropped down to $6,300. To find the value drop, we use subtraction.
$32,000-$6300
$25,700
Now we know that his car value dropped $25,700 in value over the course of 3 years. Now we need to figure out how much value it dropped per year. To do this, we split the money into 3 years.
$25,700÷3
$8,566.6666666...
We can round this to $8,567
On average, his car lost $8,567 in value, per year. Now, we need to find how much value his car had after one year in order to get our integer. (a fraction of 2 whole numbers)
$32,000-$8,567
$23,433
Now that we know what his can was worth after one year, we can say that his can was worth $23,433 out of the $32,000 originally was worth. Out of can mean division, or fraction, and because these are both whole numbers, and integer. This is our integer:
<u>Since we cannot simplify it, this is our integer that represents the average decrease in value per year.</u>
I hope this was helpful, keep learning! :D