Question

3You buy a new car for $50,000. The value of the car was calculated five years later. If the carwas valued at $25,000. What is the rate of depreciation for the car? Round answer to thenearest hundredth *

Answer 1

Notice that the car has lost $25,000 in value over a period of 5 years. This way, the rate of depreciation is:

`\frac{25000\text{USD}}{5\text{ years}}\rightarrow5000\text{ USD per year}`

$5,000 per year!