SOLUTION: carlos bought a car worth 1200000. if the value of the car depreciates by 10% a year, what is the cost of the car at the end of 4 years?

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Question 953719: carlos bought a car worth 1200000. if the value of the car depreciates by 10% a year, what is the cost of the car at the end of 4 years?
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
For now, say the purchase price was +p+
Let +v+ = it's current value
(1) end of 1st yr:
+p+-+.1p+
(2) end of 2nd yr:
+%28+p+-+.1p+%29+-+.1%2A%28+p+-+.1p+%29+
+p%2A%28+1+-+.1+%29%5E2+
----------------------
The general formula is:
+v+=+p%2A%28+1+-+r+%29%5En+
+r+ = yearly depreciation rate
+n+ = number of years
------------------------------
+p+=+1200000+
+r+=+.1+
+n+=+4+
+v+=+1200000%2A%28+1+-+.1+%29%5E4+
+v+=+1200000%2A.9%5E4+
+v+=+.6561%2A1200000+
+v+=+787320+
The car is worth $787,320