Question

How much is a $16,589.29 new car worth if it depreciates by 18% in the first year?

Answer 1

$13603.22

Explanation:

If the car is depreciating by 18%, that means its value is lowering by 18% per year.

When using percentages, they can be multiplied by .01 to be used in calculations, so 18% in the calculations will be .18.

First multiply 16589.29 by .18 to get the amount by which the value lowers per year, which is 2986.0722.

Subtract 16589.29 by 2986.0722 to get 13603.2178, but since American dollars do not go lower than $.01, this number will be rounded to the hundredth's place, to get an answer of:

$13603.22