A car costs $45000. The cost of the car depreciates by 30% each year. How muck will the car be worth in five years?
45000 * 0.7^5
To find out how much the car will be worth in five years, we need to calculate the depreciation each year and subtract it from the original cost.
The car depreciates by 30% each year, which means it retains 70% of its value after each year.
In the first year, the car will be worth 70% of $45000:
$45000 * 0.70 = $31500
In the second year, it will be worth 70% of $31500:
$31500 * 0.70 = $22050
In the third year, it will be worth 70% of $22050:
$22050 * 0.70 = $15435
In the fourth year, it will be worth 70% of $15435:
$15435 * 0.70 = $10804.50
In the fifth year, it will be worth 70% of $10804.50:
$10804.50 * 0.70 = $7563.15
Therefore, the car will be worth approximately $7563.15 in five years.