A new car typically loses 20% of its initial value during the first year. During the second year, the car loses 15% of its value after the first year. Find the value of the car after the first year and after the second year.
What was the car's initial value?
remaining value after 1 year
= .8 or 80%
remaining value after 2 years
= .8(.85)
= .68 or 68%
I forgot to add that I'm sorry! I meant t o type Find the value of the car ($18,000)
so it's actually
A new car typically loses 20% of its initial value during the first year. During the second year, the car loses 15% of its value after the first year. Find the value of the car($18,000) after the first year and after the second year.
The answer would be 14880 dollars.
STEP BY STEP EXPLANATION:
- Loses 20% of its inital value:
18600*0.20
= 3720
18600-3720
= 14880!
To find the value of the car after the first year, we need to subtract 20% of its initial value from the initial value.
Let's assume the initial value of the car is $x.
To calculate the value after the first year, we need to subtract 20% of $x from $x:
Value after the first year = $x - 0.20*$x
Simplifying this expression, we have:
Value after the first year = $x(1 - 0.20)
Value after the first year = $x(0.80)
So, the value of the car after the first year is 80% of its initial value.
Now, to find the value of the car after the second year, we need to subtract 15% of the value after the first year from the value after the first year.
Let's call the value after the first year V1.
To calculate the value after the second year, we need to subtract 15% of V1 from V1:
Value after the second year = V1 - 0.15*V1
Simplifying this expression, we have:
Value after the second year = V1(1 - 0.15)
Value after the second year = V1(0.85)
Substituting the value of V1 from the calculation above, we have:
Value after the second year = $x(0.80)(0.85)
So, the value of the car after the second year is 68% (0.80 * 0.85) of its initial value.