Question

Find the rate of depreciation to the nearest whole percent for the car in problem 19.

Answer 1

Where is problem 19?

Answer 2

oh sorry.. just a minute

Answer 3

Problem 19
find the average annual deprectaion for a car that cost $19,000 three years ago and is now worth $12,100.

I got $2,300 for this. :)

Answer 4

Are you there? :)

Answer 5

there are many methods of calculating depreciation, are we to assume a straight line method here?

Answer 6

also, depreciation and worth (fair market value?) tend to be different concepts in accounting

Answer 7

Im not sure.. this is consumer mathematics. Help please? :)

Answer 8

if we assume that the worth is based upon a straightline depreciation method, then yes, the annual depreciation would amount to inital cost minus present worth, divided by 3 years gives me 2300 a year

Answer 9

the rate of depreciation .....

Answer 10

Ok then you would get 766.6?

Answer 11

im not sure what its refering to by a percentage tho

maybe depreciation value divided by initial cost? there should be a formula in your material that covers this

Answer 12

or it might be the depreciation cost divided by the worth

Answer 13

Hmm.. Well I have the answer in my book and it says 12%.. No idea how the got that..

Answer 14

well, 2300/19000 = .12105 which would seem to be correct them

Answer 15

it loses about 12% of its initial value each year

Answer 16

So you take the answer from number (19) $2,300
and the divide it by the prive the car was three years ago and the you get .12105 and the round of and then get .12 = 12%

Answer 17

yes

Answer 18

Thank you. :)