Question

24) Hank bought a $24.000 car when he graduated from college. If his car depreciates at a rate of 10% per year, how long will it take for the car to lose half its value? 4 months 5 years 6 years, 7 months D) 7 years, 4 months

Answer 1

$24,000 when Hank bought the car
$12,000 half of its value

$21,600 after 1 year
$19,440 after 2 years
$17,496 after 3 years
$15,746.4 after 4 years
$14,171.76 after 5 years
$12,754.58 after 6 years
$11,479.12 after 7 years

after 6 years and half, Hank's car would have lost half of its value

Answer is C!