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dangina [55]
3 years ago
10

The value of a car depreciates by 18% per year. Work out the current value of a car bought 4 years ago for £20000

Mathematics
2 answers:
dem82 [27]3 years ago
5 0
Given:
depreciation rate: 18%
Value of the car : 20,000
Age of the car : 4 years.

The depreciation is based on the current value of the car. Therefore, the amount of depreciation varies.

<span> <span> </span><span><span> yr   Beginning Value   Dep. Rate    Depreciation      Ending Value
</span> <span> 1 <span>   20,000.00                 </span>18% <span>             3,600.00 </span> <span>         16,400.00
</span> </span> <span> 2 <span>   16,400.00                 </span>18% <span>             2,952.00       </span> <span>   13,448.00
</span> </span> <span> 3 <span>   13,448.00                 </span>18% <span>             2,420.64 </span> <span>         11,027.36
</span> </span> <span> 4 <span>   11,027.36                 </span>18% <span>             1,984.92 </span> <span>           9,042.44
</span> </span></span></span>
The current value of a car bought 4 years ago is 9,042.44

Beginning value : purchased amount on 1st year. then, ending balance of the previous year from 2nd year onwards.
Depreciation : Beginning value * depreciation rate
Ending value : Beginning value - depreciation

ASHA 777 [7]3 years ago
5 0
20000 = 100% 18 x 4 = 72% 20000 / 100 = 200 200 = 1% 200 x 72 = 14,400 20000 - 14,400 = 5600 The value of it now should be £5600
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