3 years ago

A car depreciated by 25% during the first year. If the car was purchased for 28,000 what is the car worth today? Show your work.

1 answer:

4 0

Depreciation is a reduction in value of an asset. Therefore, a 25 percent depreciation would mean a reduction of ¼ on the initial worth of the car.

Reduction = 28,000 * (1/4) = 7,000

Car worth today = 28,000 – 7,000 = 21,000

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