Question

A car loses value at a rate of 27% each year. How long will it take for its value to halve? Explain in the easiest way

Answer 1

Step-by-step explanation:

Formula of compounding can be used here.

Let the price of car be x

We know that compound formula ⇒S=P(1+100R)n

⇒2x=x(1−10027)n

Here we used ′−′ sign because the amount is decreasing

⇒21=(1−0.27)n

⇒21=(0.73)n

⇒n≈2.2years