NECO 2022 · Paper 1 · Q17

Commercial arithmetic

The value of a car depreciates by 20% at the beginning of each year. If the car costs ₦1 million, find the value of the car after 2 years.

Worked solution (try it first)

Each year the car keeps 80% of its value, so multiply by 0.8 each year.
After 1 year: $0.8 \times 1\,000\,000 = 800\,000$ .
After 2 years: $0.8 \times 800\,000 = 640\,000$ .
The value is ₦640,000.00, option C.

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