Question

Lyle purchased a motorcycle for $13,430. It depreciates about 4.1% each year. What is the value of the motorcycle after seven years?
$13,112.07
$9,575.59
$10,018.58
$17,792.26

Answer 1

it goes down by 4.1% or 0.041 per year
that means it has a value of (1-0.041)= 0.959 of the previous year

try 0.959^n * 13430
where n is the number of years

Answer 2

Thanks..
So I replaced n with 7 and got 10,018.58... Is that accurate?

Answer 3

yes.

Does the idea make sense?
after one year it is worth
0.959*13430
after the next year, it goes down by another factor of 0.959 or
0.959*0.959*13430 = 0.959^2 * 13430

we keep doing that for 7 years.

Answer 4

So the only thing that would be altered would be n for years.. Alright. Gotcha. Thanks.