# Ben buys a car for $50,000. The value of the car decreases at a rate of 4% per year. How much will the car be worth in 3 years?

##### 1 Answer

Jul 23, 2017

#### Explanation:

This is the same sort of thing as compound interest.

Growth

Decay

This question requires decay.

Assumption: The calculation cycle is annually.

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Note that if the calculation cycle was monthly then the change is:

As there are 12 months in 1 year we use the percentage

And the