A car was valued at $31,000 in the year 1995. The value depreciated to $11,000 by the year 2000.
A) What was the annual rate of change between 1995 and 2000?
r
=
Round the rate of decrease to 4 decimal places.
B) What is the correct answer to part A written in percentage form?
r
=
%.
C) Assume that the car value continues to drop by the same percentage. What will the value be in the year 2003 ?
value = $
Round to the nearest 50 dollars.
11/31 = 0.354839 in 5 years
so the annual rate is (11/31)^(1/5) = 0.8128
That is, it loses 18.72% per year