Question

Item 1 The value of a car is $23,000. It loses 11.1% of its value every year. Find the approximate monthly decrease in value. Round your answer to the nearest tenth.

Answer 1

$212.8

Explanation:

If the car loses 11.1% per year, we need to calculate how much money is that:

`23,000(11.1)/(100) = 2,553.`; this value is the lost per year.

Now, in order to calculate this loss per month, we divide it by 12:

`(2553)/(12) =212.75`

Hence, the monthly value decrease is $212.8, rounding it to the tenth.