Question

if a consumer purchases a car for 20000$, and it is depreciate in value by 20% each year. what will the car's value be after 3 years?

Answer 1

Answer:

Car's present value=$20000

20% depreciation per year

for that we've to find 20% of 20000

$\frac{20}{100} \times 20000 \\ 2\times2000 \\ = 4000$

Thus $4000 will be depreciated an year

after 3 years

that is

3×4000=12000

it's value will be depreciated by $12000

that is the 60% of the total amount.

now for finding price after 3 years,

20000-12000=8000

therefore it's value will be $8000 after 3 years with 20% depreciation per annum