Every year that a car is on the road it loses value. If a car loses 15 percent of its value each year and its beginning value is $24,500, what will the value of the car be after five years?(1 point) Responses $12,789.15 $12,789.15 $9240.16 $9240.16 $10,870.78 $10,870.78 $49,278.25
To find the value of the car after five years, we need to calculate the decrease in value each year and subtract it from the initial value.
The decrease in value each year is 15% of the previous year's value.
After the first year, the value of the car will be 100% - 15% = 85% of its initial value:
Value after the first year = $24,500 * 0.85 = $20,825
After the second year, the value of the car will be 85% of the value after the first year:
Value after the second year = $20,825 * 0.85 = $17,701.25
After the third year, the value of the car will be 85% of the value after the second year:
Value after the third year = $17,701.25 * 0.85 = $15,045.06
After the fourth year, the value of the car will be 85% of the value after the third year:
Value after the fourth year = $15,045.06 * 0.85 = $12,788.30
After the fifth year, the value of the car will be 85% of the value after the fourth year:
Value after the fifth year = $12,788.30 * 0.85 = $10,870.05
The value of the car after five years will be approximately $10,870.05.