If a car's value depreciates by 10% annually and its current value is $20,000, w

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Question: If a car\'s value depreciates by 10% annually and its current value is $20,000, what will be its value after one year?

Options:

Correct Answer: 18000

Solution:

Depreciation = 10% of 20000 = 2000. Value after one year = 20000 - 2000 = 18000.

If a car's value depreciates by 10% annually and its current value is $20,000, what will be its value after one year?

If a car's value depreciates by 10% annually and its current value is $20,000, what will be its value after one year?

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% of $20,000.
Step 4: Convert 10% to a decimal for calculation: 10% = 0.10.
Step 5: Multiply the current value by the decimal: $20,000 * 0.10 = $2,000.
Step 6: Subtract the depreciation amount from the current value to find the value after one year: $20,000 - $2,000.
Step 7: Calculate the final value: $20,000 - $2,000 = $18,000.

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