Question

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 much would the bike be worth five years later?

Answer 1

After the first year: 500*0.8
After the second year: 500*0.8^2
After the third year 500*0.8^3
After the fourth year 500*0.8^4
After the fifth year: 500*0.8^5 = 163.84

Answer: $ 164