A car is purchased for 20,000. After each year, the resale value decreases by 30%. What will the resale value be after 4 years?

Question

asked May 9, 2024 142k views

2 Answers

Dragomir Kolev · Answer 1 · 2024-05-10T14:59:57+0000

Explanation:

A is the value of the car after n years P is the purchase price of the car R is the annual depreciation rate n is the number of years

In this case, we have:

P = 20,000 R = 30 n = 4

So, we can plug these values into the formula and get:

A = 20,000 * (1 - 30/100)^4 A = 20,000 * (0.7)^4 A = 20,000 * 0.2401 A = 4,802

Therefore, the resale value of the car after 4 years will be $4,802.