Question

The value of a car deprecates by 35% each year.at the end of 2007 the value of the car was £5460. Work out the value of the car at the end of 2006

Answer 1

The depreciation rate:

Explanation:

Step 1: Total depreciation = 35% x 2 years = 70%

Step 2: Find the value of the car at the end of 2006:

Value at the end of 2006 = 5460 x (100 - 70)/100 = 1638

Therefore, the value of the car at the end of 2006 was £1638.

Answer 2

£3549

Explanation:

The value of the car depreciates by 35% each year, so we can calculate the depreciation for 2006 as follows:

Depreciation for 2006 = 0.35 * £5460 = £1911

The value of the car at the end of 2006 is:

£5460 - £1911 = £3549