The value of a car decreases by 5% each year. Sophie bought a car two years ago for £10000. Work out the value now.

Given:

The value of car before two years = £10000

The value of the car decreases by 5% each year.

To find:

The present value of the car.

Solution:

The exponential decay model for present value is

Where, a is the initial value, r is the rate of decay and t is time in years.

Putting P=10000, r=5 and t 2, we get

On further simplification, we get

Therefore, the present value of the car is £9025.

180 square centimeters

step-by-step explanation:

is only a line? i think so