Question

A car is bought for $12500. Its value depreciates by 15% per year.

Calculate its value after:
i) 1 year.
ii) 2year

Answer 1

To find the value of the car after specific years, multiply the initial value by (1 - depreciation percentage).

Step-by-step explanation:

To calculate the value of the car after a certain number of years, we need to apply the depreciation percentage to its initial value.

i) To find the value after 1 year, we multiply the initial value by (1 - 15%) or (0.85). $12500 * 0.85 = $10625.

ii) To find the value after 2 years, we multiply the value after 1 year by (1 - 15%) or (0.85). $10625 * 0.85 = $9031.25.