Question

If the retail price of a car is $12,099.00 and the percent of depreciation is 40% per year, what is the residual value of the car after one year?

Answer 1

We will have the following:

We will have that the residual value will be:

`x=12099.00-12099.00(0.40)\Rightarrow x=7259.4`

So, the residual value will be $7259.4.