Question

A car purchased for $20,000 depreciates annually at a rate of 8%. What will be the approximate value of the car in the 10th year?

Answer 1

$8687.76

Explanation:

100-8=92

20,000*0.92=18400 (This is after one year)

20,000*0.92^10= 8687.7690 (After 10 years)

Answer 2

$4000

Explanation:

20000x0.08=1600

1600x10=16000

20000-16000=4000