A car is purchased for $25,500. After each year, the resale value decreases by 35%. What will the resale value be after 4 years?

4551.91

Step-by-step explanation:

Every year, the value goes down to 65% of what it was the previous year. (100-35 = 65)

25,500 x .65 = 16,575 (1 year)

16,575 x .65 = 10,773.75 (2 years)

10,773.75 x .65 = 7,002.94 (3 years)

7,002.94 x .65 = 4551.91 (Final year)

The end price is 4551.91

The resale value after four years will be $4,552

Step-by-step explanation:

Year one:

35% of $25,500 = $8,925

$25,500 - $8,925 = $16,575

Year two:

35% of $16,575 = $5,801.25

$16,575 - $5,801.25 = $10,773.75

Year three:

35% of $10,773.75 = $3,770.8125

$10,773.75 - $3,770.8125 = $7,002.9375

Year four:

35% of $7,002.9375 = $2,451.028125

$7,002.9375 - $2,451.028125 = $4,551.909375

Round if allowed/needed:

Thousandth place: $4,551.909

Hundredth place: $4,551.91

Tenth place: $4,551.91

Nearest whole number: $4,552

33

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