Question

Kelly bought a used car for $20,000 and the dealer told her that it will lose 9% of its value each year after its purchase.

If values continue at that rate, calculate how long it will take until the car is worth only $7,000.

Round your answer to the nearest tenth.

Answer 1

10

Explanation:

9% of $20,000 is $1,800

20,000 - 1,800 = 18,200

18,200 - 1,800 = 16,400

16,400 - 1,800 = 14,600

14,600 - 1,800 = 12,800

12,800 - 1,800 = 11,000

11,000 - 1,800 = 9,200

9,200 - 1,800 = 7,400

It takes 7 years to get 7,400 and to the nearest tenth is 10