Question
A car was valued at 30k in 1994, it depreciated to 15k by 2000.
What was the annual rate of change between 94 and 2000?
What was the annual rate of change between 94 and 2000?
Answers
Ms. Sue
15,000 / 6 = ?
Nicole
No, Ms. Sue, but thank you!
Nicole
-.1091
Steve
It depreciated to 1/2 its value in 6 years.
(1/2)^(1/6) = 0.89089
So, the depreciation rate is .1091 = 10.91% per year
(1/2)^(1/6) = 0.89089
So, the depreciation rate is .1091 = 10.91% per year