Hi I need help please

Suppose you bought a car in mid 2006 fir $10,000. If its value in current dollar depreciates steadily at 12% per year what will its value in current dollars be in mid 2009?

Thanks

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- February 3rd 2008, 07:43 PM #1

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- February 4th 2008, 01:17 AM #2

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After one year its value is (100-12)% of what it was at the start of the year

(100-12)%=88%=88/100=0.88

So you can find 88% of $10,000 by doing 0.88x10,000

and 88% of that is 0.88 x your answer

and 88% of that is 0.88 x your answer.

To do it in one quick easy calculation work out 0.88^3 x 10000

- February 4th 2008, 03:24 AM #3

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