Question

A motorcycle cost $12,000 when it was purchased. The value of a motorcycle decreases by 6% each year. Find the rate of decay each month and select the correct answer below. −0.005143% −0.5143% −0.005% −0.5%

Answer 1

-0.5%

Explanation:

Given :A motorcycle cost $12,000 when it was purchased.

The value of a motorcycle decreases by 6% each year.

To Find : Find the rate of decay each month

Solution :

Rate of decay per yer = 6%

Rate of decay in 12 months = 6%

Rate of decay in 1 month =
`(6)/(12) \%`

=
`0.5\%`

So, Rate of decay each month is -0.5%

Hence Option D is true .

Answer 2

-0.5%

Explanation:

Given,

The value of a motorcycle decreases by 6% each year.

Thus, the change rate per year = - 6 %

Also, 1 year = 12 months,

Hence, the change rate each month =
`\frac{\text{Change rate per year}}{12}`

`=(-6)/(12)`

`=-0.5\%`

Therefore, last option is correct.