Question

Danny brought a car for £10000 the value of the car depreciated by 20% in the first year then the value of the car depreciated by 10% in the second year work out the value of Dannys car at the end of two years

Answer 1

£7200

In first year depreciates by 20%, that is it is worth 80% of it's original value

80% = $\frac{80}{100}$ = 0.8

value after 1 year = 0.8 × £10000 = £8000

In the second year it depreciates by 10% of it's value, that is it is worth 90% of it's value at the end of the first year.

90% = $\frac{90}{100}$ = 0.9

value after 2 years = 0.9 × £8000 = £7200