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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.

A−0.006924%
B−0.006667%
C−0.666667%
D−0.6924%

Verified Answer :

The value of the car decreases by 8% every year.

The cost of the car is $20,000.

So rate for one year depreciation is 0.08

Rate of depreciation per month shall be 0.08 /12 =0 .0066667

Hence the rate of depreciation shall be 0.66667%

But as it is depreciation.

It must be negative

Hence the rate of depreciation every month shall be - 0.666667%

Option C) is the right answer.

The rate of decay of car for each month = \(\bold {-0.666667\%}\)

hence option (c) is correct

A car cost $20,000

The value of the car decreases by 8% each year.

Cost of a  car = $20000

The value of the car decreased by each year by 8% so the yearly depreciation rate can be given by = 0.08

As 0.08  is rate given  for 12 months

Let \(\bold d\) be the depreciation rate for each month

depreciation rate for each month can be formulated as

\(\rm d = \dfrac{0.08}{12} = 0.006667 = 0.666667\%\)

As the depreciation is written in negative so the decay for each month can be given as \(\bold {-0.666667\%}\)

hence option (c) is correct.

For more information please refer to the link below

https://brainly.com/question/11556257

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