SOLUTION: Hi, hope you can help me withs this problem A new car depreciates by 20% in its first year. Each succeding year it depreciates by 10%. Assume the car is still in good work conditi

Algebra ->  Sequences-and-series -> SOLUTION: Hi, hope you can help me withs this problem A new car depreciates by 20% in its first year. Each succeding year it depreciates by 10%. Assume the car is still in good work conditi      Log On


   

Question 54813: Hi, hope you can help me withs this problem
A new car depreciates by 20% in its first year. Each succeding year it depreciates by 10%. Assume the car is still in good work condition after 10 years. If the car cost $25000 calculate the value of the car after 10 years. Express your answer to the nearest $10
Tanks for your help!
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
A new car depreciates by 20% in its first year. Each succeding year it depreciates by 10%. Assume the car is still in good work condition after 10 years. If the car cost $25000 calculate the value of the car after 10 years. Express your answer to the nearest $10
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Value = (25000(0.8))(0.9)^9=$7,748.41
The 1st year its value is .8 of the original
Then each successive year the value is .9 times the
previous years value.
Cheers,
Stan H.