Final answer:
Jane's car depreciated at an annual rate of 7.50% over 5 years after considering the dealer's 4% commission fee.
Step-by-step explanation:
Jane bought a new car for $800,000 and sold it 5 years later. After a 4% commission charge by the dealer, she received $480,000. To calculate the annual rate of depreciation, we must first calculate the selling price before the commission. Since 96% (100% - 4% commission) of the selling price equals $480,000, we divide $480,000 by 0.96 to get the pre-commission selling price, which is $500,000. Now, we find the total depreciation which is the original price ($800,000) minus the selling price ($500,000), resulting in a total depreciation of $300,000 over 5 years.
The annual depreciation rate as a percentage can be calculated by dividing the total depreciation by the original price and then dividing by the number of years, which is 5. So, the annual depreciation percentage is (($300,000 / $800,000) / 5) × 100%, which equals 7.50%.