If a car's value depreciates by 15% each year and its current value is $20,000,

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

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

Correct Answer: $17,000

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) * 20,000.
Step 4: Perform the multiplication: 15/100 equals 0.15, so 0.15 * 20,000 equals $3,000.
Step 5: Subtract the depreciation amount from the current value: 20,000 - 3,000.
Step 6: Perform the subtraction: 20,000 - 3,000 equals $17,000.
Step 7: The value of the car after one year is $17,000.

Depreciation Calculation – Understanding how to calculate the decrease in value of an asset over time, specifically using a percentage.