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lubasha [3.4K]
3 years ago
13

A car valued at $20,000 depreciates at a rate of 2%during the first 5 years, then at a rate of 2.5% every year after that. What

will the car's value be after 10 years?
Mathematics
1 answer:
Alika [10]3 years ago
3 0
Sure, let me help you on this one! 

We are starting with a value of $20,000.

We will experience a 10% price drop in the first five years (2*5)

20,000 times 0.90 equals to 18,000

$18,000 dollars after five years.

We will also experience a 12.5% the following five years.

18,000 times 0.875 equals to 15,750.

The answer to this question is $15,750.
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