Question

An automobile depreciates, or loses value, as it gets older. Suppose that a particular automobile

loses 20% of its value each year. Find the value of this car when it is 6 years old, if it cost $23,999
when it was new.

Answer 1

First we need to find what is 20% off $23,999
1) = 20/100 x 23,999= $4,799
To find the decrease over 6 years :
2)= $4,799 x 6 = $28,798.8

Finally
= 28,798.8-23,999= $4,799.8

$4,799.8 is the final value.