Question

PLEASE HELP ITS URGENT

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?

Answer 1

So the annual percent of decay is: 7.77%

Explanation:

If the value of a car was $18000 in 2006, and in 2016 it was worth $4000 it means, it lose 77.77% of its value in 10 years.

To calculate the percentage of decay we use the rule of three:

If the price of the car in 2006 ($18000) represents 100%, then, how much does $4000 represents?

4000*100/18000 = %22.22

Now, we know that $4000 represents 22.22% the original value, so it lose 100% - 22.22% = 77.77% of its value.

So the annual percent of decay is: 77.77% / 10 = 7.77%