A car's value depreciates by 20% each year. If the current value is $10,000, wha

A car's value depreciates by 20% each year. If the current value is $10,000, what will be its value after one year?

A car's value depreciates by 20% each year. If the current value is $10,000, what will be its value after one year?

Correct Answer: 8000

Step 1: Identify the current value of the car, which is $10,000.
Step 2: Calculate 20% of the current value. To do this, multiply 0.2 by 10,000.
Step 3: Perform the multiplication: 0.2 * 10,000 = 2,000.
Step 4: This means the car will lose $2,000 in value after one year.
Step 5: Subtract the depreciation amount from the current value: 10,000 - 2,000.
Step 6: Perform the subtraction: 10,000 - 2,000 = 8,000.
Step 7: The value of the car after one year will be $8,000.

Depreciation Calculation – Understanding how to calculate the depreciation of an asset over time, specifically using a percentage decrease.
Percentage Application – Applying percentage values to a given amount to determine the decrease in value.