Question

The price of a new car is $20,000. If it has a depreciation rate of 18% per year, what is its value in 3 yr?

Answer 1

Answer:

Step-by-step explanation:

Depreciation in 1st year= 18%×$20,000=18÷100×$20,000= 0.18×$20,000=$3600

New value=$20,000-$3600=$16,400

Depreciation in 2nd year=18% of $16,400=0.18×16,400=$2,952

New value=$16,400-$2,952=$13,448

Depreciation in 3rd year=18% of $13,448=0.18×$13,448=$2,420.64

New value=$13,448-$2,420.64=$11,027

.36

Answer 2

Answer: After 3 years the value of the new car would be $11,027.36