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Zara's car depreciates at a rate of 14% per year.

By what percentage has Zara's car depreciated after 5 years?

Give your answer to the nearest whole number.

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Zara's car depreciates at a rate of 14% per year. By what percentage has Zara's car-example-1
asked
User Mkg
by
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1 Answer

4 votes

Answer:

53%

Explanation:

You want to know the depreciation of car value after 5 years if it is 14% per year.

Multiplier

The multiplier of value each year is ...

1 + growth rate = 1 + (-14%) = 0.86

When the value has been multiplied by that 5 times, it has been multiplied by ...

0.86^5 ≈ 0.4704

This represents a change in value from the original value of ...

0.4704 -1 = -0.5296 = -52.96% ≈ -53%

Zara's car has depreciated by 53% after 5 years.

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Zara's car depreciates at a rate of 14% per year. By what percentage has Zara's car-example-1
answered
User Jhnstn
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