Question #89bbe
1 Answer
Apr 21, 2017
$17304.27
Explanation:
We must first realize that taking 2.75% off of something is the same as multiplying that thing by 0.9725, since after we remove 2.75% it is now worth 97.25% of its value.
If we remove 2.75% twice, it's the same as multiplying by 0.9725 twice, or multiplying by
Now let's model the system here.
The car is initially worth 24865 (dollars, but I'll drop the sign for now). We then remove 2.75% every year for 13 years (2007-2020). As discussed above, that's equivalent to multiplying by
The value of the car in the year 2020 will be:
Just for fun:
The value of the car in year "n" (this only makes sense for years after 2007) is: