Question

. A man bought a car for $60 320. After using it for 2 years he decides to trade in the car. The company estimated a depreciation of 10% for the first year of its use and a further 15% on its reduced value for the second year.(a) Calculate the value of the car after two years.(b) Express the value of the car after two years as a percentage of the original value. *

Answer 1

Answer:

(a) 39,208

(b) 65%

Step-by-step explanation:

(a) The car loses 10% the first year and 15% the second year so that’s 35% lost in total after two years.

35% of 60,320 is 21,112

60,320 - 21,112 = 39,208

39,208 ÷ 60,320 = 0.65 (65%)