Question

A car is purchased for 28,000 after each year, the resale value decreased by 25% what will be the resale value be after 3 years?

Answer 1

11,812.5

Explanation:

25% = 0.25

(YEAR ONE)

`28,000*0.25 -- > 21,000`

↓ (why?)

28,000 * 0.25 = 7,000

`28,000 - 7,000 = 21,000`

(YEAR TWO)

`21,000 * 0.25 -- > 15,750`

↓ (why?)

`21,000 * 0.25 = 5250`

`21,000 - 5,250 = 15,750`

(YEAR THREE)

`15,750 * 0.25 -- > 11,812.5\\`

↓ (why?)

`15,750 * 0.25 = 3,937.5\\15,750 - 3,937.5 = 11,812.5`

Answer = 11, 812.5