if the value of a car depreciates by 60% over ten years, and its value in the year 2000 is $2500, what was its value in the year 1990?

Question

I have the answer to this question, however I do not know how it is to get the answer. Somehow the answer is 6250.

Answer 1

Let x = value in 1990

 

Then the value 10 years later = x - 0.60x = 2500

 

                                                               0.40x = 2500

 

                                                                      x = 2500/0.40 = $6250