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
$9240.16
$9240.16
$49,278.25
$49,278.25
$10,870.78
$10,870.78
$12,789.15
To find the value of the car after five years, we can use the formula:
Value after x years = Beginning value * (1 - Percentage loss/100)^x
Plugging in the given values, we have:
Value after 5 years = $24,500 * (1 - 15/100)^5
= $24,500 * (0.85)^5
= $24,500 * 0.4437053125
≈ $10,870.78
Therefore, the value of the car after five years will be approximately $10,870.78.