The value of a car decreases by 20 percent per year mr sing purchases a 22000 automobile what is the value of the car at the end of the second year
To calculate the value of the car at the end of the second year, we need to find 80% of 80% of the original value.
After the first year, the car is worth 80% of $22,000: 0.8 * $22,000 = $17,600.
After the second year, the car is worth 80% of $17,600: 0.8 * $17,600 = $14,080.
Therefore, the value of the car at the end of the second year is $14,080.
To calculate the value of the car at the end of the second year, you need to determine the value after each year of depreciation.
Step 1: Calculate the value after the first year of depreciation.
The car's value decreases by 20% each year. So, after the first year, the car's value will be 80% (100% - 20%) of its initial value.
Value after the first year = $22,000 * 80% = $17,600
Step 2: Calculate the value after the second year of depreciation.
Again, the car's value decreases by 20%. So, after the second year, the car's value will be 80% of its value after the first year.
Value after the second year = $17,600 * 80% = $14,080
Therefore, the value of the car at the end of the second year is $14,080.
To find the value of the car at the end of the second year, we need to calculate the depreciation for each year.
The depreciation rate is given as 20 percent per year, which means the car loses 20 percent of its value each year.
To calculate the value at the end of each year, we can use the formula:
Value = Initial Value - (Depreciation Rate × Initial Value)
Let's calculate the value at the end of the first year:
Depreciation for the first year = 20% × $22,000 = $4,400
Value at the end of the first year = $22,000 - $4,400 = $17,600
Now, let's calculate the value at the end of the second year:
Depreciation for the second year = 20% × $17,600 = $3,520
Value at the end of the second year = $17,600 - $3,520 = $14,080
Therefore, the value of the car at the end of the second year is $14,080.