Naomi bought a new car three years ago and is thinking about changing it for an electric car.
At the end of the first year the value of the car had decreased by 12.5%.
The value of the car then decreased by 10% each year for the next two years.
Naomi has calculated that the car is now worth £17,010.00.
Work out the value of the car when Naomi bought it three years ago.
Answer:
Let value of car at start = V
V x 0.875 x 0.9 x 0.9 = 17,010
Therefore V = 17,010 / 0.875 x 0.9 x 0.9 = £24,000