Mario buys a car for $25,000. Its value depreciates (decreases) 8% each year. After how many years will it be worth less than $10,000?

Answer 1

to find out when the value is 10000 use the equation

10000= 25000(1-.08) to the x power divide by 25000.

.4= (.92) to the x power. take log of both sides

log(0.4)= x (log .92)

x= (log.4)/(log.92)

x =10.99 years

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