Question

Amir buys a new car for £16470. The value of the car will depreciate by 2% each year. Work out how much amir's car will cost after 23 years

Answer 1

Amir's car will cost £10348.88 after 23 years.

Explanation:

I finally found a UK human!

This is compound interest so you have to find a decimal multiplier and multiply that with £16470 to the power of 23.

The decimal multiplier would be 0.98. This is because you do 100% - 2% as depreciating basically means a decrease, which gives you 98% and then you divide that by 100 to get your decimal multiplier - 0.98.

16470 ×
`0.98^(23)` = £10348.88

I hope that helps you!! ^-^