1. Sam has purchased a $30,000 car for his business. The car depreciates 30% every year.

Depreciation means the value of the car goes down by that percent each year. What will be the
value of the car after the 5th year?

2. John Maier currently earns $40,000 per year. In ten years, he would like to earn twice as much.

a) He assumes that there is no constant annual salary increase, but an annual salary increase in
percent. How large would the annual percentage increase have to be to for his salary to double
in 10 years?
b) After how many years would his salary triple?