A family bought a new car in 2002 for 280 000 NOK. The value of the car decreases by 13% each year.
What can they sell their car for in 2011?
In 2007 they buy a new model of the car. Since 2002 the price has risen by 4%.
How much must the family pay in shim for the new model?
Please show how to calculate the answer.
+118658 A family bought a new car in 2002 for 280 000 NOK. The value of the car decreases by 13% each year.
What can they sell their car for in 2011?
Each year the car loses 13% of its value 100-13=87
so that means after each year it will be worth only 87% of it's previous value
After one year that will be 280000(0.87)^1 = 280000*0.87
After two years it will be 280000(0.87)*0.87 = 280000(0.87)^2
.....
After nine years it will be
2011 second hand value = 280000(1-0.13)^9 = 280000(0.87)^9
Same idea for the appreciation. 
Same car in 2007 new = 280000(1+0.04)^5
-------------------------------
Please note: I have not been answering many questions lately - there are just too many.
I answered yours because you said please. 
