Charles has just purchased a car for $9 520. He expects that the value of this car will decline by 5% each year. Eventually Charles wants to sell this car for at least $6 000 and buy a new one. How many years should Charles use this car before he can sell it?
A)12
B)10
C)8
D)6
E)4

Question

Quizplus · Accepted Answer

The car's value declines by 5% each year, so its value after n years is given by the formula: Value = 9520 * (0.95)^n. We need to find the smallest n such that the value is at least $6,000. Solving 9520 * (0.95)^n = 6000 gives n ≈ 8.

Charles Has Just Purchased a Car for $9 520