Question

A car depreciates in value by 16% per year. If the original value of the car was £28,000 workout the value of the car after 8 years

Answer 1

£6941

Explanation:

If the car depreciates by 16% each year, then its value is multiplied by 1-16% = 0.84 each year. After 8 years, the value will have been multiplied by that factor 8 times.

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Depreciated value = Original value × 0.84^8

= £28,000 × 0.247876

≈ £6941 . . . . value after 8 years