Answer:
$12,000.
Step-by-step explanation:
Given that in the year 2001, a person bought a new car for $ 15500, and for each consecutive year after that, the value of the car depreciated by 5%, to determine how much would the car be worth in the year 2005, to the nearest hundred dollars, the following calculation must be performed:
100-5 = 95
15,500 x 0.95 x 0.95 x 0.95 x 0.95 x 0.95 = X
14.725 x 0.95 x 0.95 x 0.95 x 0.95 = X
13,988.75 x 0.95 x 0.95 x 0.95 = X
13,289.3125 x 0.95 x 0.95 = X
12,624.846875 x 0.95 = X
11.993.60453125 = X
Thus, to the nearest hundred dollars, the cost of the car after 5 years will be $ 12,000.
