Question

The Mercedes S-Class luxury vehicle depreciates by 32.4% after just one year. The starting price in 2015 was $70,000. What is the depreciation amount after one year for the Mercedes S-Class vehicle?

Answer 1

First we need to change the percentage to a decimal so that we are able to use it to solve for the depreciation amount. We do this by dividing by 100:

$\frac{32.4}{100}=0.324$

Now that we have the decimal form, we can multiply this decimal by the original amount of the vehicle:

$0.324* 70,000= 22,680$

So now we know that the depreciation amount for this Mercedes is $22,680.