Question

A car was purchased for $20,000. The car depreciates by 27% each year. What is the value of the car when it is 12 years old?

Answer 1

Below

Explanation:

Losing 27 % of value each year means it retains 73% each year

we need to multiply 20 000 x .73 x .73 x .73 .... .73 (twelve times )

or re-written as 20 000 * .73^12 = value =$ 458.04