The original purchase price of a car is $16,000. Each year, its value depreciates by 10%. Three years after its purchase, what is the value of the car?
A. $16

B. $34,587.23

C. $11,664

D. $12,960

**not quite sure how to solve this... please explain? :) thx!

Question

The original purchase price of a car is $16,000. Each year, its value depreciates by 10%. Three years after its purchase, what is the value of the car?
A.       $16

B.       $34,587.23

C.       $11,664

D.       $12,960

**not quite sure how to solve this... please explain? :) thx!

jim_thompson5910 · Answer

Final Value = Original Value*(100% - 10%)^(Number of years)

FV = 16000*(1 - 0.10)^(3)

FV = 16000*(0.90)^(3)

I'll let you finish

anonymous · Answer

kk so i get 11664 ?

so my answer is C.  $11,664 ??

jim_thompson5910 · Answer

yep

anonymous · Answer

awesome!! Thank youu :)