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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

 Feb 10, 2020

Best Answer 

 #1
avatar+21544 
+1

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.

 Feb 10, 2020
 #1
avatar+21544 
+1
Best Answer

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.

geno3141 Feb 10, 2020
 #2
avatar+794 
+2

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

 Feb 10, 2020

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