A car normally depreciates 30% in value in the first year. A car is worth $11,074 after the first year. What was its original value?

Original value of the car is 15,820

Original value = ?

Rate of depreciation = 30%

Net value = 11,074

Original value = net value / (100% - depreciation rate)

= 11,074 / (100% - 30%)

Original value = 11,074 / 70%

Original value = 15,820

Depreciation value = Original value * depreciation rate

= 15,820 * 30%

= 4,746

Net value = Original value - Depreciation value

= 15,820 - 4,746

= 11,074