There is a formula for this situation,
. . but you can talk your way through it . . .
Each year, the value is only 88% of the previous year's value.Suppose you bought a car in 2006 for $10,000.
If its value depreciates steadily at 12% per year
what will its value be in 2009?
In 2006, it was worth: .$10,000.
In 2007, it was worth: .
In 2008, it was worth: .
In 2009, it is worth: .