document.write( "Question 950511: A car was purchased for $3,495 and will depreciate 20% each year. How much will the car be worth after 5 years? Max gets excited and yells out that the car will not be worth anything after 5 years. Include in this teaching assignment whether or not Max is correct. Explain why or why not. If not, find the actual percent the car would depreciate after 5 years. \n" ); document.write( "
Algebra.Com's Answer #580430 by stanbon(75887)![]() ![]() ![]() You can put this solution on YOUR website! A car was purchased for $3,495 and will depreciate 20% each year. How much will the car be worth after 5 years? Max gets excited and yells out that the car will not be worth anything after 5 years. Include in this teaching assignment whether or not Max is correct. Explain why or why not. If not, find the actual percent the car would depreciate after 5 years. \n" ); document.write( "----------------- \n" ); document.write( "Each year the car was worth 80% of it's previous years value. \n" ); document.write( "----------------------------------- \n" ); document.write( "After 5 years of depreciation the car was worth (0.8)^5*3495 \n" ); document.write( "= 0.32768*3495 = $1145.24 \n" ); document.write( "------ \n" ); document.write( "Percent of depreciation = 1145.24/3495 = 32.77% \n" ); document.write( "----------------- \n" ); document.write( "Cheers, \n" ); document.write( "Stan H. \n" ); document.write( " |