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
To find the value of the car after five years, we can calculate 15% of the car's value each year and subtract that from the previous year's value.
After 1 year: $24,500 - 15% of $24,500
= $24,500 - (0.15 * $24,500)
= $24,500 - $3,675
= $20,825
After 2 years: $20,825 - 15% of $20,825
= $20,825 - (0.15 * $20,825)
= $20,825 - $3,123.75
= $17,701.25
After 3 years: $17,701.25 - 15% of $17,701.25
= $17,701.25 - (0.15 * $17,701.25)
= $17,701.25 - $2,655.19
= $15,046.06
After 4 years: $15,046.06 - 15% of $15,046.06
= $15,046.06 - (0.15 * $15,046.06)
= $15,046.06 - $2,256.91
= $12,789.16
After 5 years: $12,789.16 - 15% of $12,789.16
= $12,789.16 - (0.15 * $12,789.16)
= $12,789.16 - $1,918.37
= $10,870.79
Therefore, the value of the car after five years will be $10,870.79.