If a car’s value depreciates by 15% each year and is currently worth $10,000, what will its value be after one year?

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Study for the Ontario Mathematics Proficiency Test. Engage with multiple choice questions and solutions. Prepare effectively for your assessment!

Multiple Choice

If a car’s value depreciates by 15% each year and is currently worth $10,000, what will its value be after one year?

Explanation:
To determine the value of the car after one year with a depreciation rate of 15%, you need to calculate 15% of the current value and then subtract that amount from the original value. The current value of the car is $10,000. To find 15% of this value, multiply: 15% of $10,000 = 0.15 × 10,000 = $1,500. Now, subtract this depreciation from the original value: $10,000 - $1,500 = $8,500. Therefore, after one year, the value of the car will be $8,500. This calculation correctly reflects the impact of the 15% annual depreciation on the car's value.

To determine the value of the car after one year with a depreciation rate of 15%, you need to calculate 15% of the current value and then subtract that amount from the original value.

The current value of the car is $10,000. To find 15% of this value, multiply:

15% of $10,000 = 0.15 × 10,000 = $1,500.

Now, subtract this depreciation from the original value:

$10,000 - $1,500 = $8,500.

Therefore, after one year, the value of the car will be $8,500. This calculation correctly reflects the impact of the 15% annual depreciation on the car's value.

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