A family buys a car for $20,000. The value of the car decreases about 20% per year. After 6 years, the family decides to sell the car. Should they sell it for $4,000? Explain
+23246 If the car decreases at the rate of 20% per year, it retains 80% of its value.
So, after 6 years, it will be worth 20000 x .806 = 5242.88.
I leave the explanation to you.
+1486 A family buys a car for $20,000. The value of the car decreases about 20% per year. After 6 years, the family decides to sell the car. Should they sell it for $4,000? Explain
Car value today is $ 20,000
year
1st 20,000 -20% = 16,000
2nd 16,000 -20% = 12,800
3rd 12,800 -20% = 10,240
4th 10,240 -20% = 8,192
5th 8,192 -20% = 6,553.6
6th 6,553.6 -20% = 5,242.88
