Question

You purchased a new car for 17,999 in the year 2015. It is now 2020 and you want to sell your car for a fair price. If your car depreciated 15% each year, how much would your car be worth right now?

Answer 1

$7,986.25

Explanation:

We can use the following formula to solve:

`A=P(1-r)^t`

P = principal value

r = rate (decimal)

t = time (years)

First, change 15% into a decimal:

15% ->
`(15)/(100)` -> 0.15

Since 2015 and 2020 are 5 years apart, we will use 5 for t. Now, plug the values into the equation:

`A=17,999(1-0.15)^5`

`A=7,986.25`

Your car would be worth $7,986.25