Question

The value of a car is $20,000. It loses 10.7% of its value every year . Find the approximate monthly decrease in value . Round your answer to the nearest tenth.

Answer 1

Answer:

$178.3

Step-by-step explanation:

The value of a car is $20,000

The car loses 10.7% of its value yearly

Since there are 12 months in a year then 10.7% can be represented as

10.7%/12

= 0.8916%

Therefore the approximate monthly decrease in value can be calculated as follows

= $20,000×0.8916/100

= $20,000×0.008916

= $178.3

Hence the approximate monthly decrease in value is $178.3