Question

A $30,000 car depreciates in value 12% a year. How much will the car be worth in 5 years?

Answer 1

to decrease a number by \(12\%\) multiply it by \(1-.12=.88\)
to do it 5 times in a row, multiply by \(.88^5\)

Answer 2

your answer is

\[30,000\times (.88)^5\] and a calculator

Answer 3

You need to apply the principles of compound interest. Basically:
\[FutureValue=CurrentValue*(1 \pm Percent)^n\]
Where n is the number of years into the future.