Question

A new car is sold for its sticker value of $19,400. Three years later, the customer returns to the car dealership to trade the car in. She is told that her car now has a value of $12,105. What is the rate of decline in the value of the car? In your final answer, include all of your calculations.

Answer 1

do you mean the annual rate?
19400(1-r)^3 = 12105
r = 0.145 = 14.5%

Answer 2

thanks