Question

if a consumer purchase a car for $20,000 and it depreciates in value by 20% each year what will the cars value be after 3 areas
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Answer 1

Answer:

10240 is the answer

Step-by-step explanation:

20000*20% = 4000 1st year depreciation

16000*20% = 3200 2nd year depreciation

12800*20% = 2560 3rd year depreciation

20000 - 4000 - 3200 - 2560 = 10240

Answer 2

Concept Introduction:

The accounting technique of spreading out the cost of a tangible item over its useful life is known as depreciation. The amount of depreciation shows how much of an asset's worth has been used. By purchasing assets over a predetermined length of time, it enables businesses to generate income from the assets they own.

Given: a consumer purchase a car for $$20,000$ and it depreciates in value by $20$% each year.

To Find:

We have to find the value of, car after $3$ years.

Solution:

According to the problem,

$20000*20/100 = 4000$  $1$st year depreciation

$16000*21/100 = 3200$ $2$nd year depreciation

$12800*20/100 = 2560$ $3$rd year depreciation

$20000 - 4000 - 3200 - 2560 = 10240$

Final Answer:

The value of car after $3$ years is $1024$.

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