Question

A new car sells for $25,000The value of the car decreases by 15% each yearWhat is the approximate value of the car 5 years after it is purchased?

Answer 1

A $11,093

Explanation:

Edge 2021

Answer 2

$6250

Explanation:

The selling price of the new car is $25,000. The car's value decreases by 15% each year.

If we consider the decrease in value of the new car is 15% of the original value of the purchase of the car, then after 5 years the value of the car will decrease by (15 × 5) = 75%.

Therefore, the price will become (100 - 75) = 25%.

So, the value of the car after 5 years will be
`(25000 * (25)/(100)) = 6250` dollars. (Answer)