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19-01-2018
Mathematics

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Suppose you buy a car with a value of 12,500.Each year your car depreciates by 3.6%.How much will your car be worth in 5 years

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bobbyv2 bobbyv2

19-01-2018

So the multiplier for decreasing by 3.6% is 0.964 (1 - 0.036)
Times the value by the multiplier to the power of 5, since that is the number of years you want.

12,500 x 0.964^5 = 10,406.27 (2dp)

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