Question

A car is purchased for $45000. It depreciates about 8% a year. What would the value be after 2 years?

1. $38,088
2. $37,800
3. $36,072
4. $42,016

Answer 1

Answer: 38,088

Explanation:

%8 = 0.08

45,000 x 0.08 = 3,600

45,000 - 3,600 = 41,400

41,400 x 0.08 = 3,312

41,400 - 3,312 = 38,088