Question

The value of Maggie's car decreased by 20% since last year, when she bought it. If the car is now worth $20,000.00, how much was the car worth when she bought it?

Answer 1

$25,000

Explanation:

The car was worth 100% of its price when it was bought.

Let the x = value of the car when she bought it last year.

It lost 20% of its value, so now it is worth only 80% of the original value.

Now it is worth 80% of x, or 0.8x.

The car is worth now $20,000.00, so 0.8x must equal $20,000.00.

0.8x = 20,000

Divide both sides by 0.8.

x = 20,000/0.8

x = 25,000

Answer: $25,000