Question

John is planning to purchase a new car that costs $15,500. On average, a new car loses 11% of its value the moment that it is driven out of the lot. After 5 years, on average, the car is worth 37% of what you paid for it at the dealership. How much will John’s car be worth after 5 years?

Answer 1

$15,500 × 37 % = $5735

Answer 2

15500 times 0.37 is 5735.

$5735

The 11% statement is extra information.