A car's value depreciates by 20% each year. If the current value of the car is $15,000, what will be its value after one year?
Question
A car's value depreciates by 20% each year. If the current value of the car is $15,000, what will be its value after one year?
Solution
To calculate the value of the car after one year, you need to subtract the depreciation from the current value.
Step 1: Calculate the depreciation amount. The car's value depreciates by 20% each year. So, 20% of $15,000 is calculated as:
0.20 * 3,000
Step 2: Subtract the depreciation amount from the current value of the car.
3,000 = $12,000
So, the value of the car after one year will be $12,000.
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