Answer: The approximate difference in the ages of the two cars is 2 years
Step-by-step explanation:
Now, since the first car (Car A) depreciates annually at a rate of 10% and is currently worth 60% or 40% less than its original value, we can calculate the number of years it took the car to depreciate to just 60% of its original worth:
= Current value/rate of depreciation
= 60%/10%
= 6 years
So, if the car depreciates by 10% every year from the year it was worth 100% of it's original value, it will take 6 years for the car to now worth just 60%
In the same manner, if the second car (Car B) is depreciating at an annual rate of 15% and is likewise currently worth just 60% or 40% less than its original value, we can calculate the number of years it will take the car to depreciate to 60% of its original worth.
= Current worth/ rate of depreciation
= 60%/15%
= 4 years
So, if the car (Car B) is depreciating at a rate of 15% per annum, the car will depreciate to just 60% in a period of 4 years.
Therefore, if the 2 cars are currently worth just 60% of their original values (recall that it took the first car 6 years and the second car 4 years to depreciate to their current values), the approximate difference in the ages of the two cars assuming they both started depreciating immediately after the years of their respective manufacture is:
= 6 years - 4 years
= 2 years
