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Jasmin bought a car 6 years ago for $25.990. Today the car is worth $16,885. What is the rate of depreciation

User Ilgam
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1 Answer

6 votes

Final answer:

The rate of depreciation is 35.06%

Step-by-step explanation:

To calculate the rate of depreciation, we need to determine the difference in value between the initial purchase price and the current value, and then divide it by the initial purchase price. Finally, we multiply the result by 100 to convert it into a percentage.

Initial purchase price: $25,990

Current value: $16,885

Depreciation = Initial purchase price - Current value

Depreciation = $25,990 - $16,885

Depreciation = $9,105

Rate of depreciation = (Depreciation / Initial purchase price) * 100

Rate of depreciation = ($9,105 / $25,990) * 100

Rate of depreciation = 0.3506...

Therefore, the rate of depreciation for Jasmin's car is approximately 35.06%.

Please note that the rate of depreciation represents the percentage decrease in value over a specific period of time. In this case, the car has depreciated by approximately 35.06% over the course of 6 years.

User Jengar
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