Question

The original value of a car is 18000, and it depreciates (loses value) by 15% each year. What is the value of the car after three years?

Answer 1

At the end of each year, the value is 100% -15% = 85% = 0.85 what it was at the beginning of the year. After 3 years, the value is
.. 18,000*0.85^3 = 11,054.25