A car is purchased for $20,000. In two years, the car is valued at $18,050. What is the rate of depreciation of the car? a. 5% b. 6% c. 8% d. 10%

asked Sep 8, 2018 63.7k views

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A car is purchased for $20,000. In two years, the car is valued at $18,050. What is the rate of depreciation of the car?

a. 5%
b. 6%
c. 8%
d. 10%

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A. 5

20000- 18050 = 1950
1950/2 = 975
975/20000 = .48 (round to 5)

Eze answered Sep 10, 2018

by Eze

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3 votes

The rate of depreciation in this car is A. 5%

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