Answer to Question #204375 in Algebra for Arvin Shopon

Question

The value of a used car is now 5,600 euros. What was the value of the car three years ago when it has dropped 16% annually?

Answer 1

Let $A_0=$  the value of the car three years ago.

Then

$$A_3=A_0(1-0.16)^3=5600$$

$$A_0=\dfrac{5600}{(0.84)^3}=9448.22$$

The value of the car three years ago was 9448.22 euros.