Question

a car generally depreciates 25% of its original value in the first year lonnoes car is worth $27300.00 after the first year. What was it's original cost?

Answer 1

First, we convert the percentage to a decimal.
25% - 0.25

Next, we times this by the cars current value.
0.25 x $27,300
= $6,825

Lastly, we add this to our original cost to determine the starting value of the car.
$27,300 + $6,825
= $34,125
Cheers!