Respuesta :
The value of the bike after a year becomes only 80% of the value a year ago. In this given, the initial amount $500 should be multiplied by 80% 5 times. The answer would be $163.84. Thus, after 5 years the dirt bike would only be $163.84.
Answer:
The price of bike after 5 year in nearest dollars is $ 164
Step-by-step explanation:
We have formula
[tex]A=P(1-R)^t[/tex]
Where
A= Price of dirt bike after t years
P= Initial price of bike
R= rate of decrease
t= time in years
It is given that the price of dirt bike today is $ 500, and its price is decreasing by 20% each year. We need to find the price after 5 years
So we have
P = $500
R = 20 % = 0.2
t= 5 years
now we plug these values in the formula, so we have the price of dirt bike after 5 years is given by
[tex]A = 500(1-0.2)^5[/tex]
[tex]A= 500(0.8)^5\\A= 500(0.32768)\\A= 163.84[/tex]
Hence the price of bike after 5 year in nearest dollars is $ 164
