Question

a motorcycle cost $12,000 when it was purchased. the value of a motorcycle decreases by 6% each year. find the rate of decay each month and select the correct answer below. a) -0.005143%b) -0.5143%c) -0.005%d)-0.5%

Answer 1

There's 12 months in a year so if the value decreases by 6% each year that would be 6 ÷ 12 which is 0.5%. Therefore the decay each month is -0.5%.