Advanced MathMediumValue after two decreases of 25%
Advanced Math practice question
A car's value is $1,600 now and falls by 25% each year. What will its value be, in dollars, in 2 years?
Answer: 900
1600 × 0.75² = 1600 × 0.5625 = 900.
Common wrong answers
- If you answered 100
- 100 is 1,600 × 0.25², keeping 25% instead of 75%.
- If you answered 800
- 800 subtracts 25% of 1,600 twice (linear).
- If you answered 1200
- 1,200 is after ONE year.
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