Your friend is going to buy a used car. The one he is considering costs $4000 and will lose value at a rate of 13% per year. How much less will it be worth in 3 years?
13% of $4000 is $520 If the $4000 car loses value at a rate of 13% each year for 3 years $520 x 3 = $1560 Subtract this amount from $4000 $4000 - $1560 = $2440
Answer: In 3 years, the used car will be worth $2440 in 3 years
