Question

Colin buys a car for £42800.

It depreciates at a rate of 5% per year.
How much will it be worth in 2 years?
Give your answer to the nearest penny where appropriate.

Answer 1

£38,6267

Explanation:

First year depreciation will be:

42800 * 0.(100-5) = £40,660

Second year worth after depreciation:

40660 * 0.(100-5) = £38,627

I hope I answered your question well.