Question

suppose that at the end of any given year an automobile is worth only 80% of its value at the beginning of that year. If a car cost $29000 new, what is its value at the end of five years

Answer 1

Answer is $ 9502.72

do u want the working??

Answer 2

i tried that answer is was not correct

Answer 3

\[29000\times0.8^{5}=$9502.72\]

Answer 4

here we can use the compounding formula as follows :
( R )^n ( 100 - R )^n
A = P (1 - ----) = P (--------)
( 100) ( 100 )

here P = 29000, R = 20, n =5
so
( 100 - R )^n (100 - 20 )^5 ( 80 )^5 8^5
A = P (--------) = 29000 (--------) = 29000 (----- ) = 29000 * -----
( 100) ( 100 ) ( 100 ) 10^5
32768
= 29000 * -------- = 9502.72
100000

So the car's value after 5 years will be $ 9502.72

Answer 5

I have given the full working..........

How did you check the answer??? From the answer key???
Sometimes there can be printing errors......