Posted by **ben!** on Monday, October 23, 2006 at 11:40am.

a new car depreciate by 20% in its first year. Each succeding year its depreciate by 10% assume the car is still good working condition after ten years. if the car costs $25000, calculate the value of the car after 10 years?

At 0 yrs, the value is $25000

After 1 year it is only 80% of its first value = 0.8 * 25000 = $20000

After 2 years it is worth 90% of its value at 1 yr = 0.9*20000 = $18000

After 3years it is worth 90% of its value at 2 yrs= 0.9*18000 = $16200

After 4 years it is worth 90% of its value at 3 yrs = 0.9*16200 = $14580

After 5 yrs value =$13122

After 6 yrs value =$11809.80

After 7 yrs value =$10628.82

After 8 yrs value =$ 9565.93

After 9 yrs value = $ 8609.34

After 10 yrs value = $7748.40

my question is is there an eaiser way to figure this question out like a formula I would use? and is my answer correct?

Is there an easier (or more convenient way) to calculate this? Yes, just look at how your calculations are progressing

Yr 1 Value = Price - 20% = P*.8

Yr 2 Value = P*.8*.9

Yr 3 Value = P*.8*.9*.9=P*.8*.9

^{2}
Yr 4 Value = P*.8*.9

^{3}
so in

Yr n Value = P*.8*.9

^{n-1}
For the 10

^{th} year it would be

Yr 10 Value = P*.8*.9

^{9}
Are your answers correct? I'll let you answer that.

## Answer This Question

## Related Questions

- math - a new car depreciated by 20% in its first year. each succeeding year it ...
- Algebra1 - 3. Jackson bought a car for $11,000.00. After 2 years, the value of ...
- maths - the value of a car depreciate by 13% of it value in the first year. in ...
- math - Jason uses his car for his job. He is allowed to depreciate the car 7% ...
- algebra 2 ap - Jason uses his car for his job. He is allowed to depreciate the ...
- pre cal - you decide to buy a car for 25000. each year your car depreciates in ...
- math - you purchase an suv for $26,000. A year later the car is worth only $24,...
- ALGEBRA - 3. A car cost $32 600 in the year 2001. By 2007, it is worth $12 295. ...
- maths - a car depreciates at rate of 10%per year. the car cost £20000 new. (a) ...
- math - The value of a car depreciate each year by 5% of its value at the ...

More Related Questions