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12 July, 12:56

A car deceased in value by 25% in the first year. purchased for $28,000, what is the car worth today.

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  1. 12 July, 13:49
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    Try this: Principal times (1+interest rate as a decimal fraction) ^ (number of yrs)

    In this case, Principal = $28,000; interest rate = - 0.25; # of years = 1

    So Decrease in value = $28,000 (0.75) ^1 = $21,000.
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