Question

The original value of a car is $15,000, and it depreciates (loses value) by 20% each year. What is the value of the car after three years?

A. $120
B. $9, 600
C. $44, 280
D. $7, 680

Answer 1

If the car has the same value the first year then it only loses value for 2 years so i guess:
15000*(1-0.2)^2=$9600
if it depreciates for the first year too then:
15000*(1-0.2)^3=$7680

Answer 2

thank you! :)

Answer 3

you're welcome :)