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Problem 4 - Entrance Test

A car’s value depreciates 12% each year. If its current value is 15,000 dollars, what was its value one year ago?

Correct: B

Current value = previous × (1 – 0.12) = previous × 0.88. So previous = 15,000 ÷ 0.88 ≈ 17,045 dollars.