A new car depreciates an average of 22% in its first year of use. If the car was worth $16,000 when it was new, what will the car be worth after 1 year?
it lost 22% of its value, so wouldn't 78% be left over?
so 16000(.78) = .....
12480
To find out the worth of the car after 1 year, we need to calculate the depreciation amount and deduct it from the original value.
First, calculate the depreciation amount:
Depreciation = 22% of $16,000
= 0.22 * $16,000
= $3,520
Next, deduct the depreciation amount from the original value:
Value after 1 year = $16,000 - $3,520
= $12,480.
So, the car will be worth $12,480 after 1 year.