Question

Sarah buys a car for £23,000.

It depreciates at a rate of 3% per year.
How many years will it take to be worth less than £20,000?

Answer 1

It will take less than 1 year for the car to be worth less than £20,000.

Step-by-step explanation:

To find out how many years it will take for the car to be worth less than £20,000, we can use a simple formula:

New value = original value - (depreciation rate x original value).

In this case, the original value is £23,000 and the depreciation rate is 3%. We need to find the number of years it will take for the new value to be less than £20,000.

Let's set up the equation: £20,000 = £23,000 - (0.03 x £23,000).

Now, we can solve for the number of years:

1. Subtract £23,000 by £20,000: £20,000 = £23,000 - (0.03 x £23,000).
2. Multiply 0.03 by £23,000: £20,000 = £23,000 - £690.
3. Subtract £23,000 by £690: £20,000 = £22,310.
4. The new value, £20,000, is less than the original value, so we stop here and can conclude that it will take less than 1 year for the car to be worth less than £20,000.