Question

A new car is purchased for 24300 dollars. The value of the car depreciates at 15% per year. To the nearest year, how long will it be until the value of the car is 5600 dollars?

Answer 1

3 days mathematically speaking

Answer 2

9 years

Explanation:

Losing 15 % means 85% remains

so multiply each year's value by .85 to find the current value

after 'n' years it will be 24300 * .85^n

when will it be 5600 ?

5600 = 24300 * .85^n

5600/24300 = .85^n

now you need to take the log of both sides and solve for 'n' years

log ( 5600/24300) / log(.85) = n = 9.031 = ~~ 9 years