Question

During the last year the value of my car depreciated by 20%. If the value of my car is $19,000 today,then what was the value of my car one year ago? Round your answer to the nearest cent, if necessary .

Answer 1

Given:

`\begin{gathered} \text{Depreciation percentage = 20\%} \\ \text{Present value = \$19,000} \end{gathered}`

Let the value of the car one year ago be represented by x.

If 20% has been depreciated, then it means the percentage left is;

100 - 20 = 80%

Hence,

`80\text{ \% of x = \$19,000}`
`\begin{gathered} (80)/(100)* x=19000 \\ (80x)/(100)=19000 \\ 80x=100*19000 \\ 80x=1900000 \\ x=(1900000)/(80) \\ x=23750 \end{gathered}`

Therefore, the value of the car one year ago was $23,750