Question

A car depreciated by 25 percent during the first year. If the car was purchased for $28,000, what is the car worth at the end of the first year? Option 1: A. $21,000 Option 2: B. $18,750 Option 3: C. $21,250 Option 4: D. $22,500

Answer 1

The value of the car at the end of the first year after depreciating by 25 percent from its purchase price of $28,000 is $21,000.

The correct answer is A

Step-by-step explanation:

The student asked about the value of a car at the end of the first year, given that it depreciated by 25% from its original purchase price of $28,000. To calculate the depreciation, we can multiply the original price by the percentage decrease.

First, we convert the percentage to a decimal, which for 25% is 0.25. Then we calculate the depreciation amount by multiplying $28,000 by 0.25, which gives us a decrease of $7,000.

To find the car's worth at the end of the first year, we subtract the depreciation amount from the original price: $28,000 - $7,000 = $21,000.

The correct answer is A