Problema Solution
In 2010 Mr. Hicks purchased a new Land Rover for $83,000. He is regretting his purchase and is going to sell the car. Over the long weekend, the dealership offered him $47,500 for trade-in value. Find and interpret the rate of depreciation.
Answer provided by our tutors
Depreciation = $83,000 - $47,500
Depreciation = $35,500
Rate of Depreciation = (83,000 - 47,500)/83,000
Rate of Depreciation = 35,500/83,000
Rate of Depreciation = 0,4277 or 42.77%.