Question

One survey estimates that, on average, the retail value of a mid-sized car decreases by 8% annually. If the retail value of a car is V dollars today, which expression represents the car’s value 1 year later?

Answer 1

Percentage by which the average value of mid sized car decreases each year = 8%

Retail value of a car today = v dollars

Amount of decrease in the value of the car after 1 year = (8/100) * v

= 2v/25 dollars

Then

The equation that represents the value of the car after 1 year = v - (2v/25) dollars

= (25v - 2v)/25 dollars

= 23v/25 dollars

So following this expression the value of the mid sized car can be easily determined after 1 year. I hope this is the answer you were looking for and the procedure is also clear to you.