According to one web page on the resale value of cars, a BMW that cost $71,000 in 2003 depreciates in value about 15% a year. How much was it worth in 2013?

Question

Sonny

Mathematics

6 March, 07:28

According to one web page on the resale value of cars, a BMW that cost $71,000 in 2003 depreciates in value about 15% a year. How much was it worth in 2013?

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Elise · Answer 1

Depreciate - to lose value over time

it loses 15% over one year meaning that it retains 85% of its value from the previous year.

2003-2013 = 10 years

71,000 * (0.85^10yrs) = $13,978. 08

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