Question 832730: the value of a new car purchased for 36000 decreases 7.5% each year how long will it take for the value of the car to reach 20000 Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! the value of a new car purchased for 36000 decreases 7.5% each year how long will it take for the value of the car to reach 20000
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Each year it retains 0.925 of its last-year value.
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Ans: V(t) = 36000*(0.925)^t
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Solve: 36000(0.925)^t = 20000
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t*log(0.925) = log(20/36)
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t = log(5/9)/log(0.925)
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t = 7.54 years
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Cheers,
Stan H.
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