SOLUTION: A car was purchased for $3,495 and will depreciate 20% each year. How much will the car be worth after 5 years? Max gets excited and yells out that the car will not be worth anythi

Algebra ->  Percentages: Solvers, Trainers, Word Problems and pie charts -> SOLUTION: A car was purchased for $3,495 and will depreciate 20% each year. How much will the car be worth after 5 years? Max gets excited and yells out that the car will not be worth anythi      Log On


   

Question 964288: A car was purchased for $3,495 and will depreciate 20% each year. How much will the car be worth after 5 years? Max gets excited and yells out that the car will not be worth anything after 5 years. I don't understand how you would attempt this question and whether Max is correct or not.
Answer by Alan3354(69443) About Me  (Show Source):
You can put this solution on YOUR website!
A car was purchased for $3,495 and will depreciate 20% each year. How much will the car be worth after 5 years?
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It's worth 80% of its worth the previous year.
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= $3495*0.8^5
=~ $1145.24