1. Glenn Bought A Car For 600,000 The Yearly Deprenation Of His Car Is 10% Of Its Value Of The Start Of The Year. What Is The Value Of 5 Years?

1. Glenn bought a car for 600,000 the yearly deprenation of his car is 10% of its value of the start of the year. What is the value of 5 years?

 

Answer:

The cars value after the 5-year depreciation is 393,660.

Step-by-step explanation:

Use geometric progression rule:

an = a₁ (r)ⁿ⁻¹

First year, a₁ = 600,000

n = 5

r = 1-0.1  or  0.9  ⇒  because of depreciation

Find the value of the car after its 5-year depreciation:

a₅ = 600,000 (0.9)⁵⁻¹

a₅ = 600,000 (0.9)⁴

a₅ = 600,000(0.6561)

a₅ = 393660


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