Question

New cars depreciate about 12% of their value each year. Determine the original cost of the car if it depreciated $3,600 in the first year.

Answer 1

$Solution: \\ let \, the\, price\, of\, the\, car\, be = x \\ depreciation = 12\% \, of\, x\\ depreciation = \$3600 \\ \Rightarrow \frac{12}{100}*x = 3600 \\ \Rightarrow \frac{12x}{100} = 3600 \\ \Rightarrow 12x = 3600 * 100 \\ x = \frac{360000}{12} \\ \Rightarrow x = \$30000 \\ \therefore \, the\, orignal \, cost\, of\, the\, car\,is\, \$30000$