Danny bought a car for €10,000. The value of the car depreciated by 20% in the first year. Then the value of the car depreciated by 10% in the second year. Work out the value of Danny's car at the end of two years.

Answer

To find the value of Danny's car at the end of two years, we will calculate the depreciation for each year step by step. 1. **Calculating the depreciation for the first year:** - Initial value of the car = €10,000. - Depreciation in the first year = 20% of €10,000. - Calculate 20%: \[ 0.20 \times 10,000 = 2,000 \] - Value at the end of the first year = Initial value - Depreciation. - \[ 10,000 - 2,000 = 8,000 \] So, the value of the car at the end of the first year is €8,000. 2. **Calculating the depreciation for the second year:** - Now, the new value of the car = €8,000. - Depreciation in the second year = 10% of €8,000. - Calculate 10%: \[ 0.10 \times 8,000 = 800 \] - Value at the end of the second year = New value - Depreciation. - \[ 8,000 - 800 = 7,200 \] Thus, the value of Danny's car at the end of the second year is €7,200. In conclusion, the value of Danny's car at the end of two years is **€7,200**.