A new car sells for $25,000. The value of the car decreases by 17% annually. After how many years will the car be worth less than $10,000. Choose the best answer.

a. after 4 years

b. after 6 years

c. after 8 years

d. not enough information

(answer B is incorrect)

answer is D

Step-by-step explanation:

Value today = $25,000

Value in 1yr = $25,000 - ($25,000 * 17/100)

= $25,000 - $4,250 = $20,750

Value in 2yrs = $20,750 - ($20,750 * 17/100)

= $20,750 - $3,527.5 = $17,222.5

Value in 3yrs = $17,222.5 - ($17,222.5 * 17/100)

= $17,222.5 - $2,927.83 = $14,294.67

Value in 4yrs = $14,294.67 - ($14,294.67 * 17/100)

= $14,294.67 - $2,430.1 = $11,864.57

Value in 5yrs = $11,864.57 - ($11,864.57 * 17/100)

= $11,864.57 - $2,016.98 = $9,847.59