Question

Mr. Jones bought a car for $64 000. The car depreciates by 20% in the first year and 10% in each of the following years. The value of the car at the end of the second year was *

Answer 1

Value at the end of the 2nd year is $46,080

Step-by-step explanation:

Depreciation for 1st year = 20/100 × 64000 = $12800

End of 1st year = $64000 - $12800 = $51200

Depreciation for 2nd year = 10/100 × 51200 = $5120

End of 2nd year = $51200 - $5120 = $46080

Answer 2

Depreciation for 1st year = 20/100 × 64000 = $12800

End of 1st year = $64000 - $12800 = $51200

Depreciation for 2nd year = 10/100 × 51200 = $5120

End of 2nd year = $51200 - $5120 = $46080

Answer:

Value at the end of the 2nd year is $46,080