Mr. Henry buys a car for 18,000 the value of the car decree says about 15% each year after four years what will be the approximate value of the car
18000 (1 - .15)^4
To find the approximate value of the car after four years, we need to calculate the depreciation value of the car each year and subtract it from the original value.
Step 1: Calculate the depreciation rate per year.
The car's value decreases by 15% each year.
Depreciation rate = 15% = 0.15
Step 2: Calculate the value of the car after one year.
Depreciation for one year = Original value × Depreciation rate
Depreciation for one year = $18,000 × 0.15 = $2,700
Value of the car after one year = Original value - Depreciation for one year
Value of the car after one year = $18,000 - $2,700 = $15,300
Step 3: Repeat Step 2 for the next three years.
Value of the car after two years = Value after one year - Depreciation for one year
Value of the car after two years = $15,300 - $2,295 = $13,005
Value of the car after three years = Value after two years - Depreciation for one year
Value of the car after three years = $13,005 - $1,950.75 = $11,054.25
Value of the car after four years = Value after three years - Depreciation for one year
Value of the car after four years = $11,054.25 - $1,658.14 = $9,396.11
Therefore, the approximate value of the car after four years will be approximately $9,396.
To find the approximate value of the car after four years, we need to calculate the value after each year and subtract 15% of the previous year's value.
Here's how you can calculate it step by step:
1. Start with the initial value of the car, which is $18,000.
2. Calculate the value after the first year. To do this, subtract 15% of $18,000 from $18,000:
Value after 1 year = $18,000 - 15% of $18,000
= $18,000 - (0.15 * $18,000)
= $18,000 - $2,700
= $15,300
3. Calculate the value after the second year. Again, subtract 15% of the previous year's value:
Value after 2 years = $15,300 - 15% of $15,300
= $15,300 - (0.15 * $15,300)
= $15,300 - $2,295
= $13,005
4. Repeat the same process for the third year:
Value after 3 years = $13,005 - 15% of $13,005
= $13,005 - (0.15 * $13,005)
= $13,005 - $1,950.75
= $11,054.25
5. Finally, calculate the value after the fourth year:
Value after 4 years = $11,054.25 - 15% of $11,054.25
= $11,054.25 - (0.15 * $11,054.25)
= $11,054.25 - $1,658.14
≈ $9,396.11
Therefore, after four years, the approximate value of the car will be approximately $9,396.11.