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3 years ago

7

if the value of a car is $22,000, and it depreciates by 15% each year. what is the car value after three years?

1 answer:

weeeeeb [17]3 years ago

6 0

At the end of 1st year it depreciates by 15%, so it reduces by 100% - 15% = 85%

At the end of 2nd year it depreciates by 15% again, so it reduces by 100% - 15% = 85%

At the end of 3rd year it depreciates by 15% again, so it reduces by 100% - 15% = 85%

Net Value = 22000 * 0.85 * 0.85 * 0.85 = 13510.75

Value after three years = $13 510.75

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