Question

The value of a car is 18,500. It loses 10.3% of its value every year. Find the approximate monthly decrease in value. Round your answer to the nearest tenth

Answer 1

$158.8

Explanation:

There are 12 months in 1 year.

If in 1 year, it looses value of 10.3%, so in a month it will loose value of:

10.3%/12 = 0.8583% per month

So, to find the decreased value (in dollars) per month, we got to find 0.8583% of 18,500 dollars.

First, we need to convert percentage to decimal by dividing by 100. Then we multiply that to 18,500 to get our answer. So:

0.8583% = 0.8583/100 = 0.008583

Now,

0.008583 * $18,500 = $158.7855

Rounded to nearest tenth (1 decimal pae) = $158.8