What's the car's price?
A car depreciates by 10% each year. If it is worth £18,000 now, what will it be worth after 2 years?
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Step 1: Find the value after Year 1.
ReplyDeleteA 10% decrease means the car keeps 90% of its value.
£18,000 × 0.9 = £16,200
Step 2: Find the value after Year 2.
Apply the same 10% decrease to the new value.
£16,200 × 0.9 = £14,580
Answer: After 2 years, the car will be worth £14,580.