You buy a used truck for $10,000. It depreciates at the rate of 18%
each year for 5 years. Find the value of the truck after 5 years.

Question

You buy a used truck for $10,000. It depreciates at the rate of 18%
    each year for 5 years. Find the value of the truck after 5 years.

anonymous · Answer

Start with year 1.
At the beginning it is worth 10,000, at the end it's work 82% of that.

anonymous · Answer

?

anonymous · Answer

That's what depreciation means..

anonymous · Answer

ok  what now ?
im sorry ima slow learner

anonymous · Answer

when it says the truck depreciates at 18% each year
it means that at the end of the year it is worth 18% less than at the start

anonymous · Answer

so what is that number?

anonymous · Answer

what is 0.88 times 10000

anonymous · Answer

$3707?

anonymous · Answer

thats what i got but i dont think its right

anonymous · Answer

You are looking at your possible answers and trying to guess?

anonymous · Answer

OK, the formula is
P (0.88)^5
It's not 3707.
gotta go

anonymous · Answer

ok