Question

Solve the equation of exponential decay. Hugo sold his car after one year for $25,000. He bought it new for $29,400. What was the rate of depreciation?

Answer 1

15%

Explanation:

29,400-25,000 = 4,400

4,400/29,400 =0.14965

0.14965 x 100 = 14.965%

or round up to 15%