Answer:
£1,219.5
Step-by-step explanation
Original price of car = £4500,
If the car depreciates by 10% after first year
New price = 90% of 4500
New price = 0.9 * 4500
New price = £4050
Second year
Price = 90% of 4050
Price = 0.9 * 4050
Price = £3,645
Third year:
Price = 90% * £3,645
Price = 0.9 * £3,645
Price = £3,280.5
Decrease in value = £4500 - £3,280.5 = 1,219.5
Hence the value of the car would have decrease by £1,219.5 after 3 years
