Helen bought a new car a few years ago.
In the first year after she bought the car, its value depreciated at a rate of 23% per annum.
In the second year after she bought the car, its value depreciated at a rate of 19% per annum.
At the end of the second year the car was worth £10,914.75.
What was the value of the car when Helen bought it?
Answer:
To work out the value of her car after the end of the first year we can divide by the percentage multiplier:
10914.75 / 0.81 = 13475
And then using the same method for the initial price she bought it for: 13475 / 0.77 = £17,500.00.