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Jace purchases a new car for $15,500. The value of the car is expected to depreciate at a rate of 20% each year. What is the car's value in 5 years and in 10 years?



Answer :

regalmocha17

Answer:

The car's value in 5 years would be $5079.04 and in 10 years it would $1664.30

Step-by-step explanation:

Equation to Use:

V = P(r)^t

Where:

V = final value

p = principal

r = rate

t = time

Our given values are:

p = 15500

r = 0.80(-20%)

t = 5, t = 10

Plug in and solve.

For 5 years.

v = 15500(0.80)^5

v = $5079.04

For 10 years

v = 15500(0.80)^10

v = $1664.299827

round to nearest cent

v = $1664.30

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