Question

A car was purchased for $20,000 new. Each year, you can expect the car to

depreciate (decline in value) at 8%. How much will it be worth in 10 years?

Answer 1

It will be worth 25k

Explanation:

You do 20,000 divided by 8 which is 2,500 and do 2,500x10

Answer 2

It will be worth 16k in 10 years

Explanation:

divide 20k by 100

1% = 200 dollars

200 x 8 gives you 1.6k

1.6k x 10 = 16k