We are given cost of new car purchased = $22,000.
Car value is decreasing exponentially.
Car value after 1 year = 18,480.
In order to find the common ratio, we need to divide first year value of the car by initial purchased value.
Therefore, common ratio = 18,480/22,000.
Now, we need to convert 18,480/22,000 into simplest fraction.
Dividing top and bottom by 880 we get,
= 21/25.
<h3>Therefore, common ratio of decreased car value is 21/25.</h3>
