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

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

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

Correct Answer: 17000

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: 0.15 * 20000.
Step 4: Perform the multiplication: 0.15 * 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 is $17,000.

Depreciation – Understanding how to calculate the decrease in value of an asset over time, specifically using a percentage.
Percentage Calculation – Applying percentage to a given value to find the amount of depreciation.
Subtraction – Performing basic arithmetic to find the new value after depreciation.