A new car is purchased for 18000 dollars. The value of the car depreciates at 13.5% per year. What will the value of the car be, to the nearest cent, after 14 years?

Answer 1

you could easily put this in your calculator and continually multiply 18000 by (100%-13.5%), or notice that each year is just another multiplication so Value = 18000*(0.865) ^ n, where n is the number of years

Value = 18000 * (0.865) ^ 14

Value =2363.19