Question

Determine the value of a 10 year old car that costs $24,500 new and depreciates by 9% every year

Answer 1

First, we need to know how much the car depreciates each year. Multiply the price of the car by the percentage.

We can turn 9% into a decimal by moving the decimal point two places to the right.

9% = .09

24500 * .09 = 2205

Multiply the product by the amount of years you want to predict the price at.

2205 * 10 = 22050

Subtract that from the original price of the car.

24500 - 22050 = 2450

The value of a 10 year old car that costs $24500 and depreciates 9% every year will cost $2450.

Answer 2

2450 is the correct answer