A car is currently worth $28000. Each year is depreciates(loses value) by 15%. What will the car be worth in 5years?

2 Answers
Binayaka C.
Nov 22, 2016

Worth after 5 years is $12423.75

Explanation:

Current worth is C=$28000

Depreciation rate is D=15%

Time in years is T=5

Worth (W) after 5 years : W=C(1-D/100)^T=2800*(1-15/100)^5=$12423.75 [Ans]

Nityananda
Nov 22, 2016

$12,423.74(app)

Explanation:

We know the depreciation formula, A = P(1 - r/100)^n where A = value of the car after 5 years, P = Current value of the car, r = rate of interest and n = no. of years.

so, A = 28,000(1 - 15/100)^5
or, A = 28,000 * (85/100)^5
or, A = 28,000 *85/100*85/100*85/100*85/100*85/100
or, A = [7*17*17*17*17*17]/800 = [9,938,999]/800 = 12,423.74(app)

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