A car generally depreciates 25% of its original value in the first year. A car is worth $27000 after the first year. What was its original cost?

$33,750 I think!

What is value of car when 25%

MSRP- $40,450
Depreciation rate-12%

To find the original cost of the car, we need to find the value before the depreciation occurred. Given that the car depreciated by 25% in the first year, we can set up the equation as follows:

Original Cost - (25% of Original Cost) = $27000

To solve for the original cost, we will follow these steps:

1. Let's consider the original cost as "X."

2. The first year's depreciation is 25% of X, which can be expressed as 0.25X.

3. The updated value after the depreciation is the original cost minus the depreciation: X - 0.25X = $27000.

4. Simplifying the equation, we have 0.75X = $27000.

5. Now we need to isolate X (original cost) by dividing both sides of the equation by 0.75: X = $27000 / 0.75.

6. Calculating this, we find that X (original cost) is $36000.

Therefore, the original cost of the car was $36000.