Question

The Mercedes S-Class luxury vehicle depreciates by 32.4% after just one year. The starting price in 2015 was $70,000. What is the depreciation amount after one year for the Mercedes S-Class vehicle?

Answer 1

First we need to change the percentage to a decimal so that we are able to use it to solve for the depreciation amount. We do this by dividing by 100:


`(32.4)/(100)=0.324`

Now that we have the decimal form, we can multiply this decimal by the original amount of the vehicle:


`0.324*$70,000=$22,680`

So now we know that the depreciation amount for this Mercedes is $22,680.