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 $10,870.78 $10,870.78 $12,789.15 $12,789.15 $9240.16 $9240.16 $49,278.25
To solve this problem, we need to calculate the value of the car after each year and subtract 15% of the previous year's value.
Starting with a value of $24,500, after the first year, the car would be worth $24,500 - 0.15 * $24,500 = $24,500 - $3,675 = $20,825.
After the second year, the car would be worth $20,825 - 0.15 * $20,825 = $20,825 - $3,123.75 = $17,701.25.
After the third year, the car would be worth $17,701.25 - 0.15 * $17,701.25 = $17,701.25 - $2,655.19 = $15,046.06.
After the fourth year, the car would be worth $15,046.06 - 0.15 * $15,046.06 = $15,046.06 - $2,256.91 = $12,789.15.
After the fifth year, the car would be worth $12,789.15 - 0.15 * $12,789.15 = $12,789.15 - $1,918.37 = $10,870.78.
Therefore, the value of the car after five years will be $10,870.78.