Question

The value of a car decreases by 20 percent per year. Mr. Sing purchases a $22,000 automobile. What is the value of the car at the end of the second year?

$14,080

$17,600

$19,800

$26,400

Answer 1

The answer is 14,080

Explanation:

got it right

Answer 2

$14,080

Explanation:

At end of first year:

$22,000 will decrease by 20%. It means to subtract 20% of 22,000 from 22,000.

20% of 22,000 is
`(0.2)(22,000)=4,400`

Now,
`22,000-4,400=17,600`

At end of second year:

$17,600 will decrease by 20%. It means to subtract 20% of 17,600 from 17,600.

20% of 17,600 is
`(0.2)(17,600)=3520`

Now,
`17,600-3,520=14,080`

Hence, $14,080 is the value of the car at the end of 2 years. First answer choice is right.