How much will it be worth after one year?

A motorcycle cost $7,250. If it depreciates by 12% per year, how much will it be worth after one year?

---

If it depreciates by 12% each year, after the first year it would be 12% less in value than the previous year.

Find 12% of 7250
7250
x 0.12
-------
870 is the amount it depreciated

Subtract 870 from 7250
7250 - 870
= 6380

The motorcycle will be worth $6380 after one year.

Ask Algebra House