Jamaya is ready to trade in her car and purchase a newer model. The salesman at Burgess’ CarMart tells her that her car loses 20% of its value each year and that currently her car is worth only $2500. Jamaya paid $28,000 for her new car ten years ago and thinks that the salesman is trying to cheat her. She does the math and calculates that her car is worth at least $5000. Who, if anyone, calculated the value of the car correctly?

Question

anonymous · Answer

OK 28,000 *20% =5,600 per year So currently her car is worth nothing
losing 20% of value each year means that in 5 years she would have lost 100% value
I'm not sure on this but this is what I came up with

anonymous · Answer

Thank you

anonymous · Answer

Like I said I'm not completely sure but that's my answer.