Question

6. You buy a car in 2018 for $12,000. The car depreciates at a rate of 20% annually. What is tha

car worth today?

Answer 1

$4,915.2

Explanation:

• 2018 = $12,000
• 2019 = 9,600

(20% of 12,000 = 2,400 | 12,000 - 2,400 = 9,600)

• 2020 = 7,680

(20% of 9,600 = 1,920 | 9,600 - 1,920 = 7,680)

• 2021 = 6,144

(20% of 7,680 = 1,536 | 7,680 - 1536 = 6,144)

• 2022 = $4,915.2

(20% out if 6,144 = 1,228.8 | 6,144 - 1,228.8 = 4,915.2)