SOLUTION: A new car loses 20% of its original value when you buy it and 8% of its original value per year . A 6 year old car is worth $12000 what was the original value?

Question 253692: A new car loses 20% of its original value when you buy it and 8% of its original value per year . A 6 year old car is worth $12000 what was the original value?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
A new car loses 20% of its original value when you buy it and 8% of its original value per year .
A 6 year old car is worth $12000 what was the original value?
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Let "x" be the original value.
After one year the car is worth 0.80x
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Value after k years = (0.80x)(0.92)^(k-1)
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Value after 6 years = (0.80x)(0.92)^5 = 12000
Solve for "x"
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(0.8x)(0.6590815) = 12000
x = 12000/0.5272652
x = $22,758.95
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Cheers,
Stan H.
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