A car enthusiast learns that a particular model of car, which costs 34,411 new, loses 25% of its value every year. How much will the car be worth in 6 years?If necessary, round your answer to the nearest cent.

Solution

A c a r e n t h u s ia s t l e a r n s t ha t a p a r t i c u l a r m o d e l o f c a r, w hi c h cos t s 34, 411 n e w, l oses 25% o f i t s v a l u e e v ery ye a r . Ho w m u c h w i ll t h e c a r b e w or t h in 6 ye a rs ? I f n ecess a ry, ro u n d yo u r an s w er t o t h e n e a res t ce n t .

Amount : 86027.5

Solution steps

Translate the problem into an equation:

A = 34411 (1 + 0.25 \cdot 6)

34411 (1 + 0.25 \cdot 6) = 86027.5

Amount : 86027.5