Question
Example 1 A Land Cruiser was purchased new in 2014 for 140000 QAR. In 2016, it was valued at 117600 QAR. What was the percent change in value?
Ask by Erickson Lindsey. in Qatar
Dec 03,2024
Real Tutor Solution
Tutor-Verified Answer
Answer
The percent change in value of the Land Cruiser from 2014 to 2016 is -16%.
Solution
To calculate the percent change in value of the Land Cruiser from 2014 to 2016, you can use the following formula:
\[
\text{Percent Change} = \left( \frac{\text{New Value} - \text{Old Value}}{\text{Old Value}} \right) \times 100
\]
In this case:
- Old Value (2014 purchase price) = 140,000 QAR
- New Value (2016 value) = 117,600 QAR
Now, plug in the values:
\[
\text{Percent Change} = \left( \frac{117600 - 140000}{140000} \right) \times 100
\]
Calculating the difference:
\[
117600 - 140000 = -22400
\]
Now, substitute this back into the formula:
\[
\text{Percent Change} = \left( \frac{-22400}{140000} \right) \times 100
\]
Calculating the fraction:
\[
\frac{-22400}{140000} = -0.16
\]
Now, multiply by 100 to get the percent:
\[
-0.16 \times 100 = -16\%
\]
Thus, the percent change in value of the Land Cruiser from 2014 to 2016 is **-16%**. This indicates a decrease in value.
Reviewed and approved by the UpStudy tutoring team
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Simplify this solution Beyond the Answer
To find the percent change in value, subtract the new value from the old value, then divide by the old value and multiply by 100. So, (117600 - 140000) / 140000 × 100 = -16.57%. This means the Land Cruiser's value decreased by approximately 16.57% from 2014 to 2016. Value depreciation of vehicles can be influenced by a number of factors, including mileage, condition, and market demand. For instance, SUVs like the Land Cruiser often retain their value well due to their reputation for durability and capability, but all vehicles will see some level of depreciation once they leave the dealership.
