Question

John bought a car for $8,000. After one year the car depreciates in value

by 12%. After one year, what is the car worth?

Answer 1

Your answer will be 7,040.

HOW TO SOLVE: We start out with the car's value of 8,000. You see that the value of the vehicle is going to depreciate, or lower. It will depreciate by 12%, so we need to find 12% of 8,000.

This will you get you 960. All we need to do now is subtract 960 from 8,000, so you will be left with 7040.