a teacher bought his car for $24 000 exactly 10 years ago. Each year, the value of his car decreases by 10% from the year before. How much is his car worth today?
help please
To determine the current value of the teacher's car, we need to calculate the value after 10 years, considering the 10% decrease each year.
We can use the formula: Value = Initial value * (1 - Rate) ^ Number of years
In this case, the initial value is $24,000, the rate is 10% (which is 0.10 in decimal form), and the number of years is 10.
So, the calculation would be:
Value = $24,000 * (1 - 0.10) ^ 10
To simplify the calculation, let's break it down step by step:
Step 1: Calculate (1 - 0.10) ^ 10
(1 - 0.10) = 0.90
0.90 ^ 10 = 0.3487
Step 2: Calculate the value
Value = $24,000 * 0.3487
Value ≈ $8,369.19
Therefore, the teacher's car is worth approximately $8,369.19 today.