Question

~Please only answer if you know for sure~

You bought a car for $20,000. You have owned it for one year, and it is now worth $16,000. What is the percent decrease in your car's value?

20%


25%


80%


125%

Answer 1

20%.

20,000 times 0.8 is 16,000, so the decreased value that was lost was 20% of the original price.

Answer 2

Option A. 20%

Explanation:

Since the cost price of the car when it was new = $20000

After one year car value $16000.

We have to calculate the depreciation in the price or my car.

So decease in the car's value = 20000-16000 = $4000

Since cost price of the car was = $20000

therefore % decrease decrease in the price will be = (decrease in price/cost price)×100 = (4000/20000)×100 = 20%