Question

A car was purchased new in 2019 for $32,650. In 2020 the car is $23,834.50. Find the rate of depreciation for that one year?

Answer 1

Rate of depreciation = 27%

Explanation:

Given:

Purchase price = $32,650

Rate in 2020 = $23,834.50

Find:

Rate of depreciation

Computation:

Depreciation = Purchase price - Rate in 2020

Depreciation = $32,650 - 23,834.50

Depreciation = $8,815.5

Rate of depreciation = [8,815.5 / 32650] 100

Rate of depreciation = 27%