Armed Forces Classification Test (AFCT) Arithmetic Reasoning Practice Test 2025 - Free AFCT Practice Questions and Study Guide

Question: 1 / 400

A car's value depreciates by 10% each year. If it is worth $20,000 now, what will it be worth in one year?

$16,000

$18,000

To find the value of the car after one year, you start with the current value and apply the depreciation rate. The car is currently worth $20,000 and depreciates by 10%. This means that it will lose 10% of its value over the next year.

First, calculate 10% of $20,000:

10% of $20,000 = 0.10 * $20,000 = $2,000.

Next, subtract this depreciation from the current value:

$20,000 - $2,000 = $18,000.

The car will be worth $18,000 after one year of depreciation. This shows how the depreciation amount is deducted from the current value to find the new value, which is precisely why this answer is correct.

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$20,000

$22,000

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