Question

Adam buys a car for £18680 which depreciates in value at a rate of 2.5% per year. Work out how much Adam's car will be worth in 22 years. ​

Answer 1

Adam's car will be 8,406£ in 22 years.

Explanation:

I. Find the lose value of 2.5% car by

2.5/100 = x/18,680

46,700/100 = x

x = 467 or the lose value in 1st year.

II. Find the true value of Adam's car by

n year = 18,680 - 467(n)

1st = 18,680 - 467(1)

= 18,213 means if he sell his car now, he'll get 18,213£

22th = 18,680 - 467(22)

= 18,680 - 10,274

= 8,406£

That makes 8,406£ is the right answer.

Hope that help :)