David bought a new car for shilling 800,000. After 5 years, he sold it through a second-hand car dealer. The dealer charged a commission of 4% for the sale of the car. If David received shilling 480,000, calculate the annual rate of depreciation of the car.

Answer 1

(800000*r^5)(.96) = 480000
r = .91
So, the car depreciated at 9% per year