Question

The value of a car depreciates by 35% per year. Work out the current value of a car bought 2 years ago for £20000

Answer 1

First year: the depreciation is (35/100) x 20000 = £7000; now the value of the car is £20000 - £7000 = £13000;

Second year: the depreciation is (35/100) x 13000 = £4550; the current value of the car is £13000 - £4550 = £8450.