Multiple choice

The yearly depreciation of the value of a car is 10%. What will be the percentage decrease of the value of the car after 4 years?

  1. 38.24

  2. 32.56

  3. 34.39

  4. 40.12
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

With 10% yearly depreciation, the value becomes 90% each year. After 4 years: Value × (0.9)^4 = Value × 0.6561. The decrease is 1 - 0.6561 = 0.3439 = 34.39%. Compound decrease is multiplicative, not additive.

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