Question

Bradley is purchasing a new car for 37000. If the car loses 20%of its value every year, how much will the car be worth in 7 years?

Answer 1

ANSWER

After 7 years the car will worth, 7,759.5

EXPLANATION

The initial value of the car is 37000.

The rate of depreciation is 20%

In 7 years time, we can calculate the value of the car using the formula,

$A=P(1-r\%)^n$

We substitute the values into the formula to obtain,

$A=37000(1-0.2)^7$

$A=37000(0.88)^7$

$A=7759.5$ to the nearest tenth