If a car's value depreciates by 30% in a year and its original value is $20,000,

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Question: If a car\'s value depreciates by 30% in a year and its original value is $20,000, what is its value after one year?

Options:

Correct Answer: 14,000

Solution:

Depreciation = 30% of $20,000 = $6,000. Value after one year = $20,000 - $6,000 = $14,000.

If a car's value depreciates by 30% in a year and its original value is $20,000, what is its value after one year?

If a car's value depreciates by 30% in a year and its original value is $20,000, what is its value after one year?

Step 1: Identify the original value of the car, which is $20,000.
Step 2: Determine the percentage of depreciation, which is 30%.
Step 3: Calculate the amount of depreciation by multiplying the original value by the depreciation percentage: $20,000 * 0.30.
Step 4: Perform the multiplication: $20,000 * 0.30 = $6,000. This is the amount the car depreciates.
Step 5: Subtract the depreciation amount from the original value to find the value after one year: $20,000 - $6,000.
Step 6: Perform the subtraction: $20,000 - $6,000 = $14,000. This is the value of the car after one year.

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