Question

A $22,000 car depreciates by 12% per year.

Determine the model which estimates the value of the car t years after its purchase

How much will the car be worth in 4 years.

Answer 1

$22,000 * 0.12 = $2,640
so
$22,000 - $2,640 = $19,360
so
$19,360 after 1 year.

$19,360 * 0.12 = $2,323.20
$19,360 - $2,323.20 = $17,036.80 (2 years)

$17,036.80 * 0.12 = $2,044.416
Don't round until you finish the problem.
$17,036.80 - $2.044.416 = $14,992.384 (3 years)

$14,992.384 * 0.12 = $1,799.08608
$14,992.384 - $1,799.08608 = $13,193.29792 (4 years)
ROUND
$13,193.29792 rounded to $13,193.30