Question

The value of a dirt bike decreases by 25% each year. If you purchased this dirt bike today for $500, to the nearest dollar how much would the bike be worth 5 years later?

Answer 1

This problem is a geometric progression. Let P1=500, the price now, r=25, the decreasing rate, then, the price P after t=5 years is,
\[P=P1\cdot\left(1-\frac{r}{100}\right)^t\] Check it.