Question

A car was bought in 2018 for $120 000. In

2019, its value decreased by 20%. In 2020, its
value decreased by 10% of its value in 2019.
What is the value of the car at the end of 2020?

Answer 1

$ 86 400.

Explanation:

20 % reduction leaves 80 % value = .80

then 10 % reduction leaves 90% value = .90

(120 000 * .80 ) * .90 = $ 86 400.