Question

The original value of a car is 22,000, and it depreciates (loses value) by 15% each year. What is the value of the car after three years?

Answer 1

Ok, so 22,000 - 15% = 18700. Next, 18700 - 15% = 15895, and finally 15895 - 15% = 13510.75. I believe your answer is 13510.75. Hopefully this helped!

Answer 2

The value of the car after three years will be 13510.75

Explanation:

Given : The original value of a car is 22,000, and it depreciates by 15% each year.

We have to find the value of car after three years.

We know,

Depreciation formula given as,

`A=P(1-(r)/(100) )^n`

Where A is the amount value after depreciation.

P is present value

r is depreciate rate.

n is time period.

Given : P = 22,000 , r = 15 , and n = 3

Substitute, we have,

`A=22000(1-(15)/(100) )^3`

Simplify, we have,

`A=22000(1-0.15})^3`

Solving, we get,

A = 13510.75

Thus, the value of the car after three years will be 13510.75