Question

Last year the principals car was worth 28,000. Next year it will be worth 25,270. What is the annual rate of depreciation? What is the car worth now?

Answer 1

Last year the principals car was worth 28,000.

Next year it will be worth 25,270.

Solution:

Annual rate of Depreciation = ( 28 000 - 25 270) / 25 270 x 100/ 1 = 10 .80 %

What is the car worth now ? The car is worth = 25, 270.