Answer:
7.77% per year
Step-by-step explanation:
From 2006 to 2016 the price of the car went from $18.000 to $4.000. So it lose 77.77% of its value in 10 years.
To know the total percentage of decay in 10 years we use the rule of three.
If $18.000 represents %100
What percentage does $4000 represents?
($4000 * 100 / $18.000) = 22.22%
If the final value is 22.22% of the initial value, then it lose 77.77% of its value. (100% - 22.22% = 77.77%_
Given that the percent of decay was constant, the annual percent of decay is: 77.77% / 10 years = 7.77% per year.
