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*.92
Yr 4 Value = P*.8*.93
Yr n Value = P*.8*.9n-1
For the 10th
year it would be
Yr 10 Value = P*.8*.99
Are your answers correct? I'll let you answer that.
Answer this Question
- 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 ...
- 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 - I have two questions-- 1.What is the population of a town after 6 ...
- statistic - Jim has a 5-year-old car in reasonably good condition. He wants to ...
- Finance - After deciding to buy a new car, you can either lease the car or ...
- Math - In 2004, your family bought a new car for $15,000. Each year the value of...