A new car is purchased for $25,000. The value of the car depreciates by 10% in the first year and 10% in the next. What is the value of the car after two years?$19,500$19,750$20,000$20,250$20,500
Question
A new car is purchased for 19,50020,00020,500
Solution
The value of the car after the first year can be calculated by subtracting 10% of $25,000 from the original price.
Step 1: Calculate 10% of 2,500
Step 2: Subtract this from the original price 25,000 - 2,500 = $22,500
So, after the first year, the car is worth $22,500.
For the second year, we do the same calculation, but this time with the new value of the car ($22,500).
Step 3: Calculate 10% of 2,250
Step 4: Subtract this from the price of the car after the first year 22,500 - 2,250 = $20,250
So, after two years, the car is worth $20,250.
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