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
about $15,300
R
The value of the car decreases 15% each year, so after 4 years, the value will be 0.85^4 * $18,000 = $10,855.70. Therefore, the approximate value of the car after 4 years is about $10,800.
wrong
I apologize for the incorrect response. Let me recalculate.
If the value of the car decreases by 15% each year, the value after the first year will be 85% of $18,000:
$18,000 * 0.85 = $15,300
After the second year, the value will decrease again by 15%:
$15,300 * 0.85 = $13,055
After the third year:
$13,055 * 0.85 = $11,097.75
And after the fourth year:
$11,097.75 * 0.85 = $9,433.09
Therefore, the approximate value of the car after 4 years is about $9,400.