Question

The value of a van depreciates at the rate of 20% per year. Gary buys a new van for £27500. After n years the value of the van is £11264. Find the value of n.

Answer 1

N = the value after 4 years

Answer 2

n = 3years

Explanation:

If Gary buys a van £27500 and sell the van at a value of the £11264 after n years, depreciation will give us;

£27500-£11264 = £16236

If the van depreciates by 20% each year, yearly depreciation will be;

20% of £27500 = £5500

To get the total number of years n it takes the van to depreciate to £11264 will give total depreciation amount/yearly depreciation amount which gives;

£16236/£5500 = 2.9years

This means that the van has depreciate from £27500 to £11264 after 3years