Question

At the start of 2014 Mikes car was worth 12000
The value of the car decreased 30% every year

Work out the value of his car at the start of 2017

Answer 1

12,000×(1−0.3)^(3)
=4,116

Answer 2

The worth of car at the start of 2014 = $12000

The value of the car decreased 30% every year.

At start of 2015:

30% of 12000 = $\frac{30}{100} \times 12000$ = 3600

So, the value of the car at start of 2015 = 12000-3600 = $8400.

At start of 2016:

30% of 8400 = $\frac{30}{100} \times 8400$ = 2520

So, the value of the car at start of 2016 = 8400-2520 = $5880.

At start of 2017:

30% of 5880 = $\frac{30}{100} \times 5880$ = 1764

So, the value of the car at start of 2017 = 5880-1764 = $4116.

So, the value of his car at the start of 2017 is $4116.