Larry's car is worth $18,000 after 5 years.When the car was new,it sold for $24,000.What is the depreciation rate?

Question

Quizplus · Accepted Answer

To find the depreciation rate, we need to determine how much value the car lost over 5 years. We can do this by subtracting the current value from the original value:

$24,000 - $18,000 = $6,000

The depreciation rate is the percentage of the original value that was lost, which we can calculate by dividing the lost value by the original value and multiplying by 100:

($6,000/$24,000) x 100 = 25%

Therefore, the depreciation rate is 25%.

Out of the answer choices provided, C is the closest to 25%, with a value of 5.6%. The other choices are too low or too high, and do not accurately reflect the depreciation rate.

Larry's Car Is Worth $18,000 After 5 Years