2012-03-02 09:00:19

If the price of a car decreased 30% per year each year after it was purchased, what percentage of the car’s original value would the car have been valued at two years after purchase?

The correct answer is 49

Explanation: Assume the car initially cost $100. A 30% reduction after 1 year would mean the car was now worth 70% of what it cost. Thus, it would cost $70, since 70%  of 100 is 70. After the second year, it would cost 70% of 70, which can be found by calculating 70 x .70, which is $49. The question asks what percent of the original cost of the car does the car currently cost, and that can be found by simply taking 49/100, which is .49 or 49%.