Question

At the start of 2014 Mike's car was worth ?12000.The value of the car decreased by 30% every year.Work out the valure of his car at the start of 2017

Answer 1

Answer:

$6860.

Step-by-step explanation:

We have been given that at the start of 2014 Mike's car was worth $12000.The value of the car decreased by 30% every year.

We will exponent decay formula to solve our given problem.

$y=a\cdot (1-r)^x$, where,

y = Final value,

a = Initial value,

r = Decay rate in decimal form.

$30\%=\frac{30}{100}=0.30$  

Initial value of car is $12000.

3 years from 2014 to 2017.

$y=20,000\cdot (1-0.30)^3$

$y=20,000\cdot (0.70)^3$

$y=20,000\cdot 0.343$

$y=6860$

Therefore, the value of car at the start of year 2017 would be $6860.