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lord [1]
4 years ago
14

Ben buys a car for $50,000. The value of the car decreases at a rate of 4% per year. How much will the car be worth in 3 years?

A. $48,000 B. $44,237 C. $45,082 D. $43,270
Mathematics
1 answer:
lara31 [8.8K]4 years ago
6 0
Given that the value of $50000 car decreases by 4%  per year, the value after 3 years will be given by exponential form:
y=abˣ
where:
a=initial value
b=decreasing rate
x=time in years
from the information:
a=50000, b=0.96, x=3
thus
y=50000(0.96)³
simplifying we get:
y=$44, 236.8
~$44237

Answer:
<span>B. $44,237</span>
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