Question

The value of a car decreases by 20 percent per year. Mr. Sing purchases a $22,000 automobile. What is the value of the car at the end of the second year?

Answer 1

What I did was take 22,000 and divide by 100 to get 1 percent of the value (22,000). I got 220. I multiplied 220 by 20 (to get what 20 percent would be) and got 4,400. Now subtract 4,400 twice (or 8,800 once) from 22,000. The value of the car at the end of the second year would be $13,200.

Answer 2

22,000 - 20% = 17,600

17,600 - 20% = 14,080

$14,080 at the end of the second year .