SOLUTION: A new car cost $1 20000. After one year, its value decreases by 20%. For the second year, its value decreases by further 10%. What is the value of the car after two years?

Question 1163334: A new car cost $1 20000. After one year, its value decreases by 20%. For the second year, its value decreases by further 10%. What is the value of the car after two years?

Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
let x = the cost of the car.
after 1 year, the value drops 20%.
x * (1 - .20) = .8 * x
after the second year, it drops another 10%.
.8 * x * (1 - .1) = .9 * .8 * x = .72 * x

if the original cost of the car was 120,000, then the value of the car at the end of the second year is .72 * that = 86,400.

if the original cost of the car was 12,000, then the value of the car at the end of the second year is .72 * that = 8,640.

RELATED QUESTIONS
A new car costs $120000. After 1 year, its value decreases by 20%. For the second year... (answered by Alan3354)

The value of a new $3500 sailboat decreases 10% per year. Find its value after 1 year. (answered by mangopeeler07,jojo14344)

The value of a new car decreases by 20% in the first year and by 15% in the second... (answered by ikleyn)

A laptop computer is purchased for $2700. Each year its value decreases by 20%. After... (answered by LinnW)

the value of a new car purchased for 36000 decreases 7.5% each year how long will it take (answered by stanbon)

A car is purchased for $23,500 . After each year, the resale value decreases by 20% (answered by josgarithmetic)

1)Jhon's income is 20% more than that of Mr Thomas . How much percent is the income of Mr (answered by jorel555)

28Sally buys a car for £3600. Over the course of a year the value of the car decreases... (answered by josgarithmetic)

Hi, hope you can help me withs this problem A new car depreciates by 20% in its first... (answered by stanbon)