Question

A car bought for $20,000. Its value depreciates by 10% each year for 3 years. What is the car's worth after3 years?

Answer 1

Answer:

$14,580

Step-by-step explanation:

To start off, 10% of 20,000-one easy way to do this is to multiply 20,000 by 0.1, which is 10% in decimal form

-In doing that, you get 2,000

-Now the question says that the value is depreciated which means it goes down in value, so subtract 2,000 from 20,000 to 18,000

-the value of the car after one year is now $18,000

Now, let's move to the second year.  This time find 10% of 18,000

-multiply 18,000 by 0.1 to get 1,800

-since the value is depreciating, or becoming less, we will subtract 1,800 from 18,000 to get 16,200

-the value of the car after two years is now $16,200

Finally, let's look at the value of the car after three years.  Only this time, we will now find 10% of 16,200

-multiply 16,200 by 0.1 to get 1,620

-since value is being depreciated, or lessened, we will once again be subtracting.  Subtract 1,620 from 16,200 to get 14,580

Therefore, the value of the car after three years is now $14,580.