Acar cost $20,000 when it was purchased. the value of the car decreases by 8% each year. find the rate of decay each month and select the correct answer below.
a. −0.006924%
b. −0.006667%
c. −0.7%
d. −0.6924%

The value of the car decreases by 8% every year.

The cost of the car is $20,000.

So rate for one year depreciation is 0.08

Rate of depreciation per month shall be 0.08 /12 =0 .0066667

Hence the rate of depreciation shall be 0.66667%

But as it is depreciation.

It must be negative

Hence the rate of depreciation every month shall be - 0.666667%

Option C) is the right answer.

The rate of decay of car for each month =

hence option (c) is correct

A car cost $20,000

The value of the car decreases by 8% each year.

Cost of a  car = $20000

The value of the car decreased by each year by 8% so the yearly depreciation rate can be given by = 0.08

As 0.08  is rate given  for 12 months

Let be the depreciation rate for each month

depreciation rate for each month can be formulated as

As the depreciation is written in negative so the decay for each month can be given as

hence option (c) is correct.

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