Question

You are buying a used car which costs $12,000. You plan to sell the car after keeping it for 5 years. Research shows that this car will lose value at a rate of 8% per year. How much will tbe car be worth after 5 years?

Answer 1

Answer:

your car would be worth 500 dollars

Step-by-step explanation:

Answer 2

$\text{Use the formula:}\,A=P(1-r)^t\\\\\text{Plug your values into the equation}\\\\A=12,000(1-0.08)^5\\\\\text{Solve:}\\\\12,000(1-0.08)^5\\\\12,000(0.92)^5\\\\12,000(0.659)\\\\\boxed{\ 7,908.98}$