Arithmetic Reasoning
Arithmetic Reasoning
Yesterday I presented a question about depreciation. The question was: If Tom’s car is worth $9,000 and depreciates by 7% per year, how much will his car be worth in 2 years?
This problem is a depreciation problem. As an ASVAB tutor, I make sure to review the topic of depreciation in my Arithmetic Reasoning lessons. This problem is a 4-step problem.
To work with percents, we need to change percents to decimals.
7% becomes .07
The car’s value decreases by 7% for the first year.
Year 1
$9000 x. 07 = $630.
Subtract $9000 – $630 = $8370
Year 2
The starting price is $8370
Find 7% of $8370 and subtract again.
$8370 x .07 = $585.90
Subtract $8370.00 – $585.90 = $7784.10
The answer is $7784.10.
Did you know how to solve this problem?
