Why do we get different answers when we use the equation to calculate the new value versus taking 78% of each new value each year for the problem below.
A car presently valued at $12,000 depreciates 22% each year. Determine the value of the car 2 years and 6 months from now.
A car presently valued at $12,000 depreciates 22% each year. Determine the value of the car 2 years and 6 months from now.