Question

The 2006 value of a car was $18,000. In 2016, it was worth $4000. If the annual percent of decay has been constant, what is the annual percent of decay? Please show your work!

Answer 1

7.77% per year

Explanation:

From 2006 to 2016 the price of the car went from $18.000 to $4.000. So it lose 77.77% of its value in 10 years.

To know the total percentage of decay in 10 years we use the rule of three.

If $18.000 represents %100

What percentage does $4000 represents?

($4000 * 100 / $18.000) = 22.22%

If the final value is 22.22% of the initial value, then it lose 77.77% of its value. (100% - 22.22% = 77.77%_

Given that the percent of decay was constant, the annual percent of decay is: 77.77% / 10 years = 7.77% per year.