Question

The value of a dirt bike decreases by 25% each year. If you purchased this dirt bike today for $500, to the nearest dollar how much would the bike be worth 5 years later?
$84
$119
$164
$222
is there a formula for this?

Answer 1

The formula is


F = P(1-r)^t


where F is the future value, P is the present value, r is the rate of decrease (as a decimal) and t is the time in years

Answer 2

In this case, P = 500, r = 0.25 and t = 5, so

F = P(1-r)^t

F = 500(1-0.25)^5

Answer 3

let me do the math

Answer 4

alright

Answer 5

118.65?

Answer 6

good, now round to the nearest dollar

Answer 7

$119

Answer 8

thank man

Answer 9

sure thing