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
$12,789.15
$12,789.15
$49,278.25
$49,278.25
$10,870.78
$10,870.78
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To find the value of the car after five years, we can multiply the beginning value by the percentage decrease for each year.
First year: $24,500 - 15% = $24,500 - (0.15 * $24,500) = $24,500 - $3,675 = $20,825
Second year: $20,825 - 15% = $20,825 - (0.15 * $20,825) = $20,825 - $3,123.75 = $17,701.25
Third year: $17,701.25 - 15% = $17,701.25 - (0.15 * $17,701.25) = $17,701.25 - $2,655.19 = $15,046.06
Fourth year: $15,046.06 - 15% = $15,046.06 - (0.15 * $15,046.06) = $15,046.06 - $2,256.91 = $12,789.15
Fifth year: $12,789.15 - 15% = $12,789.15 - (0.15 * $12,789.15) = $12,789.15 - $1,918.37 = $10,870.78
So the value of the car after five years is $10,870.78.
The correct answer is:
$10,870.78