Question

10A car is purchased for $24.500.After each year, the resale value decreases by 35%. What will the resale value be after 3 yearsiUse the calculator providedand round your answer to the nearest dollar.Continue

Answer 1

5)We are given that a car that was purchased for $24500 decreases by 35% each year. This means that for the first year the price is:

$24500-24500(\frac{35}{100})$

This can be rewritten as:

$24500-24500(\frac{35}{100})=24500(1-\frac{35}{100})$

Solving the operation inside the parenthesis:

$24500(1-\frac{35}{100})=24500(0.65)$

For the second year we repeat the operation, therefore, we have:

$24500(0.65)(0.65)=24500(0.65)^2$

For the third year we have:

$24500(0.65)^2(0.65)=(24500)(0.65)^3$

Solving the operation

$24500(0.65)^3=6728$

Therefore, the price after 3 years is $6728