18. A car depreciated (decreased in value) by 25% during the first year. If the car was purchased for $28,000, what is the car w
orth today?
2 answers:
Answer:
The correct answer is $21000
Step-by-step explanation:
Depreciation expense is the portion of loss of value because the time has pass by.
Depreciation expense= cost of the car * percentage of depreciation
DE=28000*0,25= $7000
Now, the car worth $7000 less
Actual price is 28000-7000: $21000
25% of 28000 is 7,000
so 28000-7000= 21,000
28000/x= 100/25
(28000 X 25)/100=7,000
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