Question

At the start of 2014, Mike's car is worth 12000. the car depreciates by 30 percent every year. how much is his car worth in 2017

Answer 1

Answer:

$4,116

Step-by-step explanation:

Worth of Mike's car at the start of 2014 = $12,000

If the car is said to depreciates every year by 30% = 30/100 = 0.3

The worth of the car at the start of 2017 is what we are to determine.

This means that the car depreciated by 30% (0.3) for 3 years since 2014 (2017 - 2014 = 3 yrs)

The worth at the start of 2017 would be calculated as follows:

12,000 × (1 - 0.3)³

= 12,000 × (0.7)³

= 12,000 × 0.343

= 4,116

Worth of the car at the start of 2017 would be $4,116