A car depreciated (decreased in value) by 25% during the first year. If the car were purchased for $28,000, what is the car worth at the end of the first year?
Well, if a car depreciated by 25% during the first year, I guess we can call it a "quarter-life crisis"! Anyway, let's do some math here. If the car was purchased for $28,000 and it depreciated by 25%, we need to subtract 25% of its original value from its original value.
25% of $28,000 is $7,000 (because 25% of 28,000 is 7,000). So, we subtract $7,000 from $28,000.
$28,000 - $7,000 = $21,000
So, at the end of the first year, the car is worth $21,000. That's definitely a hit to its ego, but hey, at least it's still running!
To find the value of the car at the end of the first year, we need to calculate the amount of depreciation.
Depreciation is the percentage decrease from the original value.
The car depreciated by 25%, which means its value decreased by 25% of $28,000.
So, the amount of depreciation is:
25% x $28,000 = $7,000
To find the value at the end of the first year, we subtract the amount of depreciation from the original value.
Value at the end of the first year = Original value - Depreciation
Value at the end of the first year = $28,000 - $7,000
Value at the end of the first year = $21,000
Therefore, the car is worth $21,000 at the end of the first year.
To calculate the value of the car at the end of the first year, we need to calculate 75% of its original value (since it depreciated by 25%). Here's how you can find the value:
1. Calculate 75% of the original value:
- Convert 75% to decimal form: 75% = 0.75
- Multiply the original value by 0.75: $28,000 * 0.75 = $21,000
Therefore, the car is worth $21,000 at the end of the first year.