Question

a new car is purchased for $45,357 and depreciates by 24% over the first year of ownership if the car is driven 12870 miles in that year what is the cost in dollars per 100 miles driven

Answer 1

If the car was purchased for 45,357 dollars,

it depreciates by 24 percent,

After one year, 24 percent of 45, 357 = 10,885.68 dollars reduction,

The new cost will be ( 45357 - 10885.68) =34,471.32 dollars

The cost in dollars per 100 miles = 34,471.32/100

= 344. 71 dollars per 100 miles