Geometric Progrssions

mak713 · **Joined:** Mon, 24 Jan 2011 07:41:11 UTC **Posts:** 52

Hello!

Help on the following please:

Suppose that a new car is worth 18,000 and that at the end of each year its value depreciates by 15% of the value it had at the beginning of that year. What will be the car worth at the end of 8 years?

Suppose V

be the value of the car at the end of kth year. The value declines by 15% and so at the end of the year its value is 85% of the original value

V

=18,000*0.85=15,300
................................
V

=V

*0.85

Is my approach to the problem correct?

Matt · **Joined:** Wed, 1 Oct 2003 04:45:43 UTC **Posts:** 9632

That is correct. Here's a shorter version:

$V_8=(0.85)^8\times 18000$

mak713 · **Joined:** Mon, 24 Jan 2011 07:41:11 UTC **Posts:** 52

Oh ok!

Thanks

Mak

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Geometric Progrssions

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