Mr. Henry buys a car for $18,000. The value of the car decreases about 15% each year. After 4 years, what will be the approximate value of the car?
(1 point)
Responses
about $2,700
about $2,700
about $9,400
about $9,400
about $10,800
about $10,800
about $15,300
To find the approximate value of the car after 4 years, we need to calculate the value decrease each year and subtract it from the original price.
The value of the car decreases by 15% each year, so after the first year, the value will be 85% of $18,000:
$18,000 * 0.85 = $15,300
After the second year, the value will be 85% of $15,300:
$15,300 * 0.85 = $13,005
After the third year, the value will be 85% of $13,005:
$13,005 * 0.85 = $11,054.25
After the fourth year, the value will be 85% of $11,054.25:
$11,054.25 * 0.85 ≈ $9,396.11
So, the approximate value of the car after 4 years will be about $9,400 (option B).