Question

The value of a dirt bike decreases by 30% each year. If you purchased this dirt bike today for $500, to the nearest dollar how much would the bike be worth five years later?

Answer 1

Since it is depreciation, the equation would be

500(0.7)^5

500 being starting price, 0.7 being price after 30% is taken off, and 5 being number of years

the worth would be $84.04 in five years