Final answer:
The price of the car has decreased by 13%.
Step-by-step explanation:
To find the percentage decrease of the price of the car, we can use the formula:
Percentage decrease = ((Original price - New price) / Original price) x 100
Given that the original price of the car was $20,000 and the new price is $17,400, we can substitute these values into the formula:
Percentage decrease = ((20000 - 17400) / 20000) x 100
Simplifying the expression gives:
Percentage decrease = (2600 / 20000) x 100 = 0.13 x 100 = 13%