A car decreases in value by 20% for the first year, and for each later year by 12% of its value at the beginning of that year. Calculate the percentage decrease in the value of the car after 3 years. Answer not 44% if that is what you got.

Answer 1

initial value = Vi
after one year v = .8 Vi

after two years v = .8 Vi *.88

after three years
v = .8 Vi *.88 * .88 = .61952 Vi
1 -.61952 = .38048
so
38.048 percent