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%

Question

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%

greenbannanabob · Answer

Is the answer not C? I worked it out and got C. and I even searched up this question and everyone seems to claim it is C, -0.666667%. Yet the system generated test marks it wrong. I just wanted to clarify I'm not being stupid before I go complain.

agent0smith · Answer

8%/12 = 0.666667

greenbannanabob · Answer

Okay thanks. I'm gonna go and inform them that the test is messed up

agent0smith · Answer

It's possible the % signs shouldn't be there, in which case it's

−0.006667