Question

Dan's car depreciates at a rate of 7% per year.

By what percentage has Dan's car depreciated after 6 years?
Give your answer to the nearest percent.

Answer 1

20%

Explanation:

Given that

The car is depreciated at a rate of 7% per year

We need to find out the percentage when the car is depreciated after 6 years

So,

Since the car is depreciated by 7% so we can say it can be 0.93 times in a year

Now after 6 years, it would make

= 0.93^3

= 0.80

So, the percentage is

= 1 - 0.80

= 0.20

= 20%