A car's value depreciates by 15% each year. If its initial value was $20,000, what will be its value after 2 years?

A $17,000

B $14,450

C $14,000

D $12,750

✓ Correct Answer: Option B

After 1 year, the value is $20,000 * (1 - 0.15) = $20,000 * 0.85 = $17,000. After 2 years, the value is $17,000 * 0.85 = $14,450.

💡 Why is B) the correct answer?

The correct answer to the question "A car's value depreciates by 15% each year. If its initial value was $20,000, what will be its value after 2 years?" is Option B: $14,450.

The other options — A) $17,000, C) $14,000, D) $12,750 — are incorrect for this GRE Exam Prep question. As explained above: After 1 year, the value is $20,000 * (1 - 0.15) = $20,000 * 0.85 = $17,000. After 2 years, the value is $17,000 * 0.85 = $14,450.

📚 About This GRE Exam Prep Practice Question

This 3-level GRE Exam Prep question from the Quantitative Reasoning topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free GRE Exam Prep practice test or use flashcards for spaced repetition review.

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A car's value depreciates by 15% each year. If its initial value was $20,000, what will be its value after 2 years?

✓ Correct Answer: Option B

📚 About This GRE Exam Prep Practice Question

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