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A new car depreciated by 25% after one year. If it was bought for £12,000, show a non-calculator method you could use to find out how much it was worth after the first year.

User Monotasker
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2 Answers

7 votes

Answer:

300.

Explanation:

User Marius B
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1 vote

Answer:

Explanation:

A non-calculator method to find the value of a car after one year, when it has depreciated by 25%, would be to use the following formula:

Original value x (1 - depreciation rate) = Depreciated value

In this case, the original value is £12,000 and the depreciation rate is 25%, so:

£12,000 x (1 - 0.25) = £9,000

So, the car would be worth £9,000 after the first year.

Another way to think about it is, the 25% depreciation is equal to 12,000 x 25/100 = £3000, so the depreciated value would be 12,000-3000 = £9000

User Jasmitha Meka
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8.1k points