Question

A motorcycle cost $12,000 when it was purchased. The value of a motorcycle decreases by 6% each year. Find the rate of decay each month and select the correct answer below:

−0.005143%
−0.5143%
−0.005%
−0.5%

Answer 1

the rate of decay each month can calculated using the following formula:

6%/year × 1 year/(12 months) = 0.5%/month
0.06 x 1/12 = 0.005/month
So the 0.5% is the right answer.
I hope it helped.