A car's value depreciates by 15% each year. If its current value is $20,000, wha

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Question: A car\'s value depreciates by 15% each year. If its current value is $20,000, what will its value be after one year?

Options:

Correct Answer: $17,000

Solution:

Value after one year = 20000 - (15/100 * 20000) = 20000 - 3000 = 17000.

A car's value depreciates by 15% each year. If its current value is $20,000, what will its value be after one year?

A car's value depreciates by 15% each year. If its current value is $20,000, what will its value be after one year?

Step 1: Identify the current value of the car, which is $20,000.
Step 2: Determine the depreciation rate, which is 15%.
Step 3: Calculate the amount of depreciation by multiplying the current value by the depreciation rate: 15/100 * 20000.
Step 4: Perform the multiplication: 15/100 * 20000 = 3000.
Step 5: Subtract the depreciation amount from the current value: 20000 - 3000.
Step 6: Perform the subtraction: 20000 - 3000 = 17000.
Step 7: The value of the car after one year will be $17,000.

Depreciation Calculation – Understanding how to calculate the depreciation of an asset based on a percentage decrease.
Percentage Reduction – Applying percentage calculations to determine the new value after a reduction.