Question

Jamaya is ready to trade in her car and purchase a newer model. The salesman at Burgess’ CarMart tells her that her car loses 20% of its value each year and that currently her car is worth only $2500. Jamaya paid $28,000 for her new car ten years ago and thinks that the salesman is trying to cheat her. She does the math and calculates that her car is worth at least $5000. Who, if anyone, calculated the value of the car correctly? Write a short paragraph explaining who is correct and show the geometric sequence which justifies your answer.

Answer 1

100-20=80

times 0.80 for every year

so

payed 28000
common ratio is 0.80
an=28000(0.8)^(n-1)
10 years
n=10
a10=28000(0.8)^(10-1)
a10=3758.1

both of them are wrong