Question

If a car costs $9,200 and its precent of depreciation is 40%, what is the residual value of the car?

Answer 1

In order to determine the residual value of the car, proceed as follow:

First, calculate the 40% of the original price:

$\frac{40}{100}\cdot9,200=3,680$

Next, subtract the previous result to the original price:

9,200 - 3,680 = 5,520

Hence, the residual value of the car is $5,520