A car's value depreciates by 10% each year. If its current value is $20,000, wha

A car's value depreciates by 10% each year. If its current value is $20,000, what will be its value after one year?

A car's value depreciates by 10% each year. If its current value is $20,000, what will be its value after one year?

Correct Answer: $18,000

Step 1: Identify the current value of the car, which is $20,000.
Step 2: Determine the depreciation rate, which is 10%.
Step 3: Calculate the amount of depreciation by multiplying the current value by the depreciation rate: 10/100 * 20000.
Step 4: Perform the multiplication: 10/100 * 20000 = 2000.
Step 5: Subtract the depreciation amount from the current value: 20000 - 2000.
Step 6: Perform the subtraction: 20000 - 2000 = 18000.
Step 7: The value of the car after one year is $18,000.

Depreciation – Understanding how the value of an asset decreases over time, specifically through a percentage reduction.
Percentage Calculation – Calculating a percentage of a given value and applying it to find the new value after depreciation.