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erastovalidia [21]
3 years ago
6

The value of a dirt bike decreases by 20% each year. If you purchased this dirt bike today for $500, to the nearest dollar how m

uch would the bike be worth 5 years later?
Mathematics
2 answers:
leva [86]3 years ago
8 0

Answer:

The price of bike after 5 year in nearest dollars  is $ 164

Step-by-step explanation:

We have formula

A=P(1-R)^t

Where

A= Price of dirt bike after t  years

P= Initial price of bike

R= rate of decrease

t= time in years

It is given that the price of dirt bike today is $ 500, and its price is decreasing by 20% each year. We need to find the price after 5 years

So we have

P = $500

R = 20 % = 0.2

t= 5 years

now we plug these values in the formula, so we have the price of dirt bike after 5 years is given by

A = 500(1-0.2)^5

A= 500(0.8)^5\\A= 500(0.32768)\\A= 163.84

Hence the  price of bike after 5 year in nearest dollars  is $ 164

jeka943 years ago
5 0
The value of the bike after a year becomes only 80% of the value a year ago. In this given, the initial amount $500 should be multiplied by 80% 5 times. The answer would be $163.84. Thus, after 5 years the dirt bike would only be $163.84. 
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