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?

Algebra ->  Customizable Word Problem Solvers  -> Finance -> 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?      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

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) About Me  (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?
-----
Solve:
30,000 = x^8*90000
----
x^8 = 1/3
----
x = (1/3)^(1/8)
-----
x = 0.8717
-----
Average decrease = 1-0.8717 = 0.1283 = 12.83%
------------------------
Cheers,
Stan H.