Answer:
So the annual percent of decay is: 7.77%
Step-by-step explanation:
If the value of a car was $18000 in 2006, and in 2016 it was worth $4000 it means, it lose 77.77% of its value in 10 years.
To calculate the percentage of decay we use the rule of three:
If the price of the car in 2006 ($18000) represents 100%, then, how much does $4000 represents?
4000*100/18000 = %22.22
Now, we know that $4000 represents 22.22% the original value, so it lose 100% - 22.22% = 77.77% of its value.
So the annual percent of decay is: 77.77% / 10 = 7.77%
