Question

The price of a car is ₱2M which depreciates by 5% at the end of each year. What is the price of the car during the fifth year?

in geometric sequence form

Answer 1

Hey Dear,

◆ Answer -

₱ 1629012.5

◆ Explanation -

At start of 1st year, price of car is ₱ 2 M = ₱ 2000000.

Price at end of each year is given by -

New price = old price (100-5)/100

New price = old price × 0.95

At the end of 1st year, price will be -

New price = 2000000 × 0.95

New price = ₱ 1900000

At the end of 2nd year, price will be -

New price = 1900000 × 0.95

New price = ₱ 1805000

At the end of 3rd year, price will be -

New price = 1805000 × 0.95

New price = ₱ 1714750

At the end of 4th year, price will be -

New price = 1714750 × 0.95

New price = ₱ 1629012.5

In fifth year, price will be same as end of 4th year. i.e. ₱ 1629012.5 .

Thanks dear...