Question

Simon purchased a four-year old car for $16400. When the car was new, it sold for $23000. Find the depreciation rate to the nearest percent.

Answer 1

The depreciation rate of a car that originally cost $23,000 and was bought four years later for $16,400 is approximately 29% when rounded to the nearest percent.

Step-by-step explanation:

The question asks us to find the depreciation rate of a car to the nearest percent.

Depreciation is the process by which a tangible asset loses value over time.

Simon purchased a four-year-old car for $16,400, which was initially valued at $23,000 when new.

The depreciation of the car can be calculated using the formula:

Depreciation Rate = ( (Original Price - Current Price) / Original Price ) * 100%

Substituting the given values, we get:

Depreciation Rate = ( ($23,000 - $16,400) / $23,000 ) * 100%

Depreciation Rate = ( $6,600 / $23,000 ) * 100%

Depreciation Rate ≈ 28.70%

Rounded to the nearest percent, the depreciation rate is 29%.