Question

The value of a car is $15,000 and depreciates at a rate of 8% per year. What is the

decay factor?

.92

8

1.08

.08

Answer 1

Answer: decay factor = 0.92

Explanation:

Given that the car depreciates at a rate of 8% per year.

What is the decay factor?

Since the car depreciation the value of the car will reduce. The decay will be represented as:

1 - %8 = 1 - 8/100

= 1 - 0.08

= 0.92

Therefore the decay factor = 0.92 which is option A