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3 years ago

7

A car cost $20,000 when it was purchased. The value of the car decreases by 8% each year. Find the rate of decay each month and

select the correct answer below.
−0.006924%

−0.006667%

−0.666667%

−0.6924%

1 answer:

ludmilkaskok [199]3 years ago

4 0

Monthly rate of growth = x
then
(1+x)^12 = 100%-8%
(1+x) = (0.92)^(1/12)=0.9930756
=>
x=0.9930756-1=-0.0069244 = -0.69244%

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