Question

Jeff buys a car for $28,000. the vehicle depreciates by 16% each year. Which of the following is the common ratio of the sequence representing the car’s value every year?

Answer 1

Find the value of the car in the next year
value next year = (100% - 16%) × 28,000
value next year = 84% × 28,000
value next year = 84/100 × 28,000
value next year = 23,520
The value of the car in the next year is $23,520

Find the ratio
ratio = value of next year/value of recent year
ratio = 23,520 / 28,000
ratio = 0.84
The ratio is 0.84, it's the same with the percentage of value in the next year (84%)