SOLUTION: A car depreciates by 30% the first year and 12% per year afterward. How much will a $25000 car be worth after 5 years?

Question 225565: A car depreciates by 30% the first year and 12% per year afterward. How much will a $25000 car be worth after 5 years?
Answer by drj(1380) (Show Source): You can put this solution on YOUR website!
A car depreciates by 30% the first year and 12% per year afterward. How much will a $25000 car be worth after 5 years?

Step 1. 30% means 0.30 and 12% means 0.12.

Step 2. Let the initial price of car.

Step 3. Let be dollar value of car after first year.

Step 4. Let be dollar value of car after second year. Also, after third year

Step 5. Then be the dollar value of car after 5 years.

Step 6. ANSWER: The dollar value of the car after 5 years is $10,494.67.

I hope the above steps were helpful.

For FREE Step-By-Step videos in Introduction to Algebra, please visit http://www.FreedomUniversity.TV/courses/IntroAlgebra and for Trigonometry visit http://www.FreedomUniversity.TV/courses/Trigonometry.

And good luck in your studies!

Respectfully,
Dr J
http://www.FreedomUniversity.TV

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