Question

A van loses 10% of its value every year. If its value when new was £6000, what is its value after 2 years?​

Answer 1

The value of the van after two years is £5,184.

Answer 2

£4860

Explanation:

• To calculate the value of the van after 2 years, we need to subtract 10% of its value each year for 2 years.

• In the first year, the van loses 10% of its value, which is 10% of £6000.

`\sf 10\%\: of \:6000\: =\:6000 * 0.10 = 600`

• So, after the first year, the value of the van becomes

£6000 - £600 = £5400

• In the second year, the van loses another 10% of its value, which is 10% of £5400.

`\sf10\% \:of\: 5400 \:= 5400 * 0.10 = 540`

• So, after the second year, the value of the van becomes

£5400 - £540 = £4860

Therefore, the value of the van after 2 years would be £4860.