Question

You purchase a car in 2010 for $25,000. The value of the car decreases by 14% annually. What would the value of the car be in 2020?

Answer 1

Answer: -$6,500

Step-by-step explanation:

Here we could , use the arithmetic progression where

T(2020 - 2010) = a + ( n - 1 )d

T10 = a + ( 10 - 1 )d --------------- 1

a = $25,000, n = 10 and d = 14% of $25,000 = $3,500 the common difference.

Note since it decreases the common difference d = -$3,500.

Now substitute for the values in the equation above.

T10 = 25,000 + 9 x -3,500

= $25,000 - $31,500

= -$6,500 (deficit )