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 5 years later?

Answer 1

The bike is now $500. The price goes down by 20% each year.

500(0.20) = 100

The bike decreases by $100 each year.

After 5 years at $100 less per year, the bike will be $0.00.