A car depreciates in value by 15% for the first year and for each year later by 12% of its value at the beginning of that year. Calculate the percentage decrease in the value of the car after 3 years.
Could someone please confirm the answer to be 38.048 because that,s what i got but i don,t have the answers thanks
value is .85 * .88 * .88 = 0.6582
so, it has lost 34.18%
Looks like you'd better show your work, huh?
Ohh I got it wrong but I'm sorry for not showing my working. I understand it now thanks for showing.
To calculate the percentage decrease in the value of the car after 3 years, we need to calculate the decrease in value for each year and then find the cumulative decrease.
Let's assume the initial value of the car is $100.
1st year: The car depreciates by 15%, which means there is a decrease of 15% of its initial value.
The decrease in the 1st year is: 15/100 * $100 = $15.
After the 1st year, the value of the car becomes $100 - $15 = $85.
2nd year: The car now depreciates by 12% of its 2nd-year value.
The decrease in the 2nd year is: 12/100 * $85 = $10.20 (approximately).
After the 2nd year, the value of the car becomes $85 - $10.20 = $74.80.
3rd year: The car depreciates by 12% of its 3rd-year value.
The decrease in the 3rd year is: 12/100 * $74.80 = $8.98 (approximately).
After the 3rd year, the value of the car becomes $74.80 - $8.98 = $65.82 (approximately).
Now, to find the percentage decrease, we need to calculate the total decrease compared to the initial value.
Total decrease = $100 - $65.82 = $34.18.
Percentage decrease = (Total decrease / Initial value) * 100 = ($34.18 / $100) * 100 = 34.18%.
Therefore, the percentage decrease in the value of the car after 3 years is approximately 34.18%.