SOLUTION: If a new car costs $18,000.00 and depreciates at a rate of 12% per year, what will be the value of the car in four years?

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Question 620156: If a new car costs $18,000.00 and depreciates at a rate of 12% per year, what will be the value of the car in four years?
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
If a new car costs $18,000.00 and depreciates at a rate of 12% per year, what will be the value of the car in four years?
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Each year the car is worth 88% of last year's value.
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Equation:
18000*0.88^4 = $10794.52
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Cheers,
Stan H.