SOLUTION: Steven purchases a car for$90,000. If the value of the car decreases per year, what is the average rate of decrease if the value of the car is $30,000 after 8 years?

Question 837961: Steven purchases a car for$90,000. If the value of the car decreases per year, what is the average rate of decrease if the value of the car is $30,000 after 8 years?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Steven purchases a car for$90,000. If the value of the car decreases per year, what is the average rate of decrease if the value of the car is $30,000 after 8 years?
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Solve:
30,000 = x^8*90000
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x^8 = 1/3
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x = (1/3)^(1/8)
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x = 0.8717
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Average decrease = 1-0.8717 = 0.1283 = 12.83%
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Cheers,
Stan H.
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