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2 years ago

Sarah bought a 7-year old car for $10,500. When the car was new, it sold for $21,000. Therefore, the depreciation rate is 9.4%.

Mathematics

1 answer:

Masja [62]2 years ago

4 0

Answer:

False, the depreciation rate is not 9.4%.

Step-by-step explanation:

Given:

Cost of 7-year old car = $10,500.

Cost of new car = $21,000

depreciation rate = 9.4%.

Solution:

Initial price minus the price after 7 years gives us the depreciation price

Therefore,

=21000-10500

=10500

Hence the price reduced by 10,500 in 7 years.

Therefore, the depreciation per year is

= $\frac{10,500}{7}$

=1,500

Hence, the depreciation rate percentage can be found out as follows:

Depreciation rate% = $\frac{1500}{21000}\times 100$ =7.14%

Hence, the answer is false.

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