The Annual Rate of Depreciation R on a Car That

question 131

Multiple Choice

The annual rate of depreciation r on a car that is purchased for P dollars and is worth W dollars t years later can be found from the formula: The car depreciates in value according to the following depreciation table. AGE IN YEARS VALUE IN DOLLARS new 3 7,750 5,200 Find the annual rate of depreciation. Round the answer to the nearest tenth.

• A) 11.4%
• B) 14.2%
• C) 30.2%
• D) 22.4%
• E) 12.5%

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