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
To find the value of the car after five years, we need to calculate 15% of its value each year for five years and subtract that amount from the beginning value.
Year 1: $24,500 - (15% of $24,500) = $24,500 - $3,675 = $20,825
Year 2: $20,825 - (15% of $20,825) = $20,825 - $3,123.75 = $17,701.25
Year 3: $17,701.25 - (15% of $17,701.25) = $17,701.25 - $2,655.19 = $15,046.06
Year 4: $15,046.06 - (15% of $15,046.06) = $15,046.06 - $2,256.90 = $12,789.16
Year 5: $12,789.16 - (15% of $12,789.16) = $12,789.16 - $1,918.38 = $10,870.78
Therefore, the value of the car after five years will be $10,870.78.