Question

A luxury car is purchased for $50,000. Its value decreases by 10% each year. How long will it take for its value to drop to $25, 000?

Answer 1

it'll cost 23,914 in 7 years. it'll cost 26 thousand in six years

Answer 2

the questions is a little general if the mean take 10% of the original value $50,000 each year. 10% of 50,000 = 5,000 that would be 5 years. HOWEVER, if they value just drops 10% each year from the new values it changes then you would do 50000- 10%(5000) of 50000 = 1st year /// 45000- 10%(4500) of 45000 = 2nd year and so on