Question

John is planning to purchase a new car that costs $15,500. On average, a new car loses 11% of its value the moment that it is driven out of the lot. Once John drives his new car off the lot, what will its value be?

Answer 1

$5,735

Explanation:

$15,000 multiplied by 0.37(aka 37%) gives you $5,735.

Answer 2

Answer: $13,795

Explanation:

$15,500 X .11 (11%) = $1705

$15,500 - $1705(depreciation) = $13,795