Question

4.2 To buy a new car is not a very good investment. In the first year the car will
decrease in value by 25%.
4.2.1
If the car costs R200 000, what will it be worth after 1 year?

Answer 1

Given:

In the first year, the car will decrease in value by 25%.

The cost of a car is Rs. 200,000.

To find:

The worth of the car after 1 year.

Solution:

The cost of a car is Rs. 200,000 and in the first year the car will decrease in value by 25%. So, the worth of the car after 1 year is:

$Worth=200000-\dfrac{25}{100}\times 200000$

$Worth=200000-\dfrac{1}{4}\times 200000$

$Worth=200000-50000$

$Worth=150000$

Therefore, the worth of the car after 1 year is Rs. 150,000.