Question

a car lose half of its value during it's first year of usage and there after loses 8% of its value in each year.calculate its value at the end of three years ( give it's value as the percentage of original value)

Answer 1

Let the original value be x.

After the first year, the value will decrease 50%, so, it will be 0.5x.

By the end of the second year, it will decrease other 8%, 0.08.

so:

0.5x*(1-0.08) = 0.46x

And by the end of the third year, will decrease 8% again, so:

0.46*(1-0.08) = 0.4232x

The price will be 42.32% of the original value.