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the value of a ca… - QuestionCove
OpenStudy (anonymous):

the value of a car declines 20% per year. what percent of the original value remains after 2 years?

5 years ago
OpenStudy (oaktree):

If the car is worth $1,000...

5 years ago
OpenStudy (oaktree):

After the first year, then it'll be worth $800.

5 years ago
OpenStudy (oaktree):

Then, it'll be worth 80/100 x 800 = 80 x 8 = $640.

5 years ago
OpenStudy (anonymous):

what if it is worth $100

5 years ago
OpenStudy (oaktree):

So, 640/1000 = 64/100 = 64%.

5 years ago
OpenStudy (oaktree):

It's the same no matter what. Because every time you're reducing by 20%.

5 years ago
OpenStudy (oaktree):

If the car is worth x, for example, then after the first year the car is 80%x and after the second it's worth 80%(80%x) = 4/5 x 4/5 = 16/25 = 64/100 = 64%.

5 years ago
OpenStudy (oaktree):

Got it?

5 years ago
OpenStudy (anonymous):

yes!! thank you so much

5 years ago
OpenStudy (anonymous):

great job OakTree!

5 years ago
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