Question

Ben buys a car for $50,000. The value of the car decreases at a rate of 4% per year. How much will the car be worth in 3 years?

Answer 1

FOR THE FIRST YEAR
4/100×50000 = 2000
50,000 - 2000 = 48000
FOR THE SECOND YEAR
4/100 × 48000 = 1920
48000-1920 = 46080
FOR THE THIRD YEAR
4/100 × 46080 = 1843.2
46080-1843.2 = 44236.2