Question

You buy a new car for $33 560. The average new car depreciation in value by about 18% each year. Approximately how much will your car be worth in 5 years?

Answer 1

Answer:

Worth of car after five years  $= 12442.03$ dollars

Step-by-step explanation:

Given -

Price of the new car  $= 33560$ dollars

Depreciation rate  $= 18$ % on the price value of car each year

The value of car after the deduction of depreciation value after 1st year

$33560 - \frac{18}{100} * 33560\\27519.2$

The value of car after the deduction of depreciation value after 2nd year

$27519.2 - \frac{18}{100} * 27519.2\\22565.74$

The value of car after the deduction of depreciation value after 3rd  year

$22565.74 - \frac{18}{100} * 22565.74\\18503.91$

The value of car after the deduction of depreciation value after 4th  year

$18503.91 - \frac{18}{100} * 18503.91\\15173.21$

The value of car after the deduction of depreciation value after 5th  year

$15173.21 - \frac{18}{100} * 15173.21\\12442.03$

Worth of car after five years  $= 12442.03$ dollars