- Original price of the car = 1,428,900
- Depreciation in the first year = 20%
- Depreciation in the second year = 10%
Calculations:
- Depreciation in the first year:
- Amount of depreciation = 20% of 1,428,900
- Depreciation in the first year = 1,428,900 * 20/100 = 285,780
- Value of the car at the end of the first year:
- Value = Original price - Depreciation
- Value at the end of the first year = 1,428,900 - 285,780 = 1,143,120
- Depreciation in the second year:
- Amount of depreciation = 10% of 1,143,120
- Depreciation in the second year = 1,143,120 * 10/100 = 114,312
- Value of the car at the end of the second year:
- Value = Value at the end of the first year - Depreciation
- Value at the end of the second year = 1,143,120 - 114,312 = 1,028,808
Therefore, the car is worth 1,028,808 at the end of two years.
