Sure, let's work through this step-by-step:
1. Initial Value:
- The initial value of Mike's car at the start of 2014 is £12,000.
2. Depreciation Rate:
- The car depreciates at a rate of 30% annually.
3. Calculating the Value at the Start of 2015:
- At the end of the first year, the car's value decreases by 30%, which means it retains 70% (or 1 - 0.30 = 0.70) of its previous value.
- Value at the start of 2015 = 70% of £12,000 = 0.70 £12,000 = £8,400.
4. Calculating the Value at the Start of 2016:
- At the end of the second year, the car's value again decreases by 30%, retaining 70% of its value at the start of 2015.
- Value at the start of 2016 = 70% of £8,400 = 0.70 £8,400 = £5,880.
5. Calculating the Value at the Start of 2017:
- At the end of the third year, the car's value decreases by another 30%, retaining 70% of its value at the start of 2016.
- Value at the start of 2017 = 70% of £5,880 = 0.70 * £5,880 = £4,116.
Therefore, the value of Mike's car at the start of 2017 is £4,116.
