A one-year-old car is now worth AED 12 000.

Its value has depreciated by 20% since it was new.

What was its price when it was new?

AED 15,000

Step-by-step explanation:

Depreciation is a reduction in the value or worth of an asset as a result of use.

Given that the car is depreciated by 20%, it means that the value of the car after the application of depreciation is the result of the original price of the car less the amount of depreciation which has been given as 20% of the original price.

Let the original price of the car (its price when it was new) be T then

T - 0.2T = 12,000

0.8T = 12,000

T = 12,000/0.8

= AED 15,000