Question

It is estimated that a new car depreciates in value by 30% during the first year of its life, and 20% during subsequent years. I buy a new car for £7200, and keep it for 4 years. How much is it worth at the end of this time.

Answer 1

Cost of car = 7200

First Year= (30×7200)÷100

2 year = (((30×7200)÷100)×20)÷100

3 year = (((((30×7200)÷100)×20)÷100)×20)÷100

4 year = (((((((30×7200)÷100)×20)÷100)×20)÷100)×20)÷100

Now you can solve it

To make it look easier solve the 1,2,3,4 year one by one