Question

The value of Maggie's car decreased by 25% since last year, when she bought it. If the car is now worth $18,000.00, how much was the car worth when she bought it?
A.
$25,714.29
B.
$24,000.00
C.
$22,500.00
D.
$19,500.00

Answer 1

B. 24,000. 
The car was worth 24,000 when she bought it.

25% = equivalent of the decreased value
18,000 = net of the decrease value

Original value = 18,000 / (100% - 25%) 
                       = 18,000 / 75%
Original value = 24,000

Decrease value = 24000 * 25%
                           = 6000

Net Value = 24,000 - 6000
                 = 18,000