16Hit1600
Advanced MathHardExponential decay after three periods

Advanced Math practice question

A car's value decreases by 10% each year. If the car is worth $800 now, what will it be worth, in dollars, in 3 years?

Answer: 583.2 or 583.20

Each year multiplies by 0.9: 800 × 0.9³ = 800 × 0.729 = 583.2.

Common wrong answers

If you answered 560
560 subtracts 10% of 800 three times (linear decrease); each 10% is taken of the current value.
If you answered 648
648 is the value after TWO years (800 × 0.81).
If you answered 720
720 is after ONE year.

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