Grandma's Old Car
Eugenia's grandmother bought a new car for $55,000 in 1970. The car depreciated in value 10% each year until 1990.
After 1990, it increased in value by 10% each year. Assuming its the year 2010 has the price of the car gone up or down compared to the orignal $55k?
Solution and explanation:
The car has lost value over time and is now worth around $44,984.88
55000*(0.9)20*(1.1)20 =
55000*(0.9*1.1)20 =
55000*(0.99)20 ~~ 44984.88
