ben bought a car for £12,000
each year the value of the car depreciated by 10%
what is the value of the car 2 years after he bought it?
To find the value of the car 2 years after Ben bought it, we need to calculate the depreciation for each year and subtract it from the original value.
Step 1: Calculate the depreciation for the first year.
Depreciation = 10% of £12,000
Depreciation = (10/100) * £12,000
Depreciation = £1,200
Step 2: Calculate the value of the car after the first year.
Value after 1 year = Original value - Depreciation
Value after 1 year = £12,000 - £1,200
Value after 1 year = £10,800
Step 3: Calculate the depreciation for the second year.
Depreciation = 10% of £10,800
Depreciation = (10/100) * £10,800
Depreciation = £1,080
Step 4: Calculate the value of the car after the second year.
Value after 2 years = Value after 1 year - Depreciation
Value after 2 years = £10,800 - £1,080
Value after 2 years = £9,720
Therefore, the value of the car 2 years after Ben bought it is £9,720.
To calculate the value of the car after 2 years, we need to apply the annual depreciation of 10% for each of the two years. Here's how you can calculate it step by step:
Step 1: Calculate the first year's depreciation.
The value of the car after the first year can be found by subtracting 10% of £12,000 from the original value:
£12,000 - (10/100 * £12,000) = £12,000 - £1,200 = £10,800
Step 2: Calculate the second year's depreciation.
Now that we have the value after the first year, we need to apply another 10% depreciation for the second year:
£10,800 - (10/100 * £10,800) = £10,800 - £1,080 = £9,720
Therefore, the value of the car 2 years after Ben bought it is £9,720.
£12,000 *(1-r)^2
=£12,000 *(1-0.10)^2
=?
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Otherwise try pencil and paper or a calculator.
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=£12,000 *(1-0.10)^2
=$12,000 *0.90^2
=?