The value of a new motorcycle depreciates by 20% once you drive it off the lot. What would the approximate price (before tax) be of a $19 465 motorcycle once driven home?

Question

asked Jun 2, 2022 64.6k views

2 Answers

Wige · Answer 1 · 2022-06-05T06:03:34+0000

Final answer:

The value of a $19,465 motorcycle, after depreciating by 20% when driven off the lot, would be approximately $15,572 before tax.

Step-by-step explanation:

The question pertains to the calculation of depreciation of a motorcycle's value. The initial purchase price of the motorcycle is $19,465.

To calculate the depreciated value after a 20% reduction, you can use the formula:

Depreciated Value = Original Price × (1 - Depreciation Rate)

In this case:

Depreciated Value = $19,465 × (1 - 0.20)

Depreciated Value = $19,465 × 0.80

Depreciated Value = $15,572