A limousine cost 75,000 new but deprecates at rate of 23% per year what is the value of the limousine after five years

$20,300.88

Step-by-step explanation:

First Year : 75,000x(1-23%)

Second Year: 75,000x(1-23%)x(1-23%)

=75,000x(1-23%)^2

Third Year : 75,000x(1-23%)x(1-23%)x(1-23%)

=75,000x(1-23%)^3

x Year : 75,000x(1-23%)^x              (Analogical Reasoning)

Hence : Fifth year:75,000x(1-23%)^5 = 75000x(0.77)^5

23%=0.23 1-23%=1-0.23=0.77

Therefore Fifth Year: 75000x(0.77)^5=$20300.88