Question

A car depreciates in value at a rate of 14% of its value annually. Julie purchased the new car

for $42,000. If Julie has owned the car for 4 years, how much would the car's value be?

Answer 1

$18,480

Explanation:

so rate of the car, increases annually by 14%

so in 4 years time it will be 14×4= 56%

new car purchased is $42,000

to find the car's value in 4 years time it would be

100%-56%,which is 44%

then 44% of $ 42,000 will give you

$18,480