College Homework Help!

Question

The percent increase or percent decrease is defined as

amount of change

_______________

Over original amount X 100 %

A new car decreases in value by

25​%

each year. Misha priced his car at

​$55 comma 04055,040.

​(a) After 2​ years, what will the car be​ worth?

​(b) To the nearest tenth of a​ percent, after 2​ years, what is the overall decrease in the value of the​ car?

Answer 1

Percent Change = (Current Value - Original Value)/(Original Value) x 100%

The Original Value of the car is $55,040. The Current Value is the value after two years. Since the car depreciates by 25% per year (0.25), the Current Value after 2 years is computed using an exponential:

Current Value = $55,040·(1 - 0.25)²

Current Value = $55,040·(0.75)² = ____?

Use your calculator to compute the Current Value then plug it into the Percent Change equation above. Negative values for percent change represent a percent decrease.