Question

from 2002 to 2012, the number of a particular make of cars sold at a dealership yearly declined to 500. The number is expected to decline at a rate of 2.8% each following year. how many cars will be sold in 2020

Answer 1

To determine the number of cars that will be sold by the year 2020, we will use the equation,

     N = (N1)(1 - r)^(t)

where N1 is the starting number of cars, r is the rate of the decrease, and t is the number of years from 2012. Substituting the konwn values,

   N = (500)(1 - 0.028)^(8)
    N = 398.38

The closest integer to the calculated value is 398. Thus, the answer is 398 cars.