Question

motorcycle was purchased 5 years ago for $16,200.
The current value of the motorcycle is $10,600. By how
much did the motorcycle decrease in value per year, on
average, over the five-year period?

A.
$5,600
B.
$2,720
C.
$1,350
D.
$1,120
E.
$1,080

Answer 1

To find out how much the motorcycle decreased in value per year on average, we first need to determine the total decrease in value over the five-year period.

1. **Calculate the total decrease in value:**
\[
\text{Total decrease} = \text{Original value} - \text{Current value}
\]
\[
\text{Total decrease} = 16,200 - 10,600 = 5,600
\]

2. **Calculate the average decrease per year:**
\[
\text{Average decrease per year} = \frac{\text{Total decrease}}{\text{Number of years}}
\]
\[
\text{Average decrease per year} = \frac{5,600}{5} = 1,120
\]

Thus, the motorcycle decreased in value by **$1,120** per year on average.

The answer is **D. $1,120**.