Question

The value of a car decreases by 5% each year.

Sophie bought a car two years ago for £10000
Work out the value now

Answer 1

10,000*0.95^2
=9025

0.95 is a multiplyer since 100%-5%=95% then divided by 100 giving you 0.95

You always power by the amount of years

So the format is always
Amount*multiplyer^years