Answer:
b. 20%
Step-by-step explanation:
2014
Car price = 20000
2015
Car price = 16000
Depreciation = 20000 - 16000 = 4000
Depreciation % = (4000/20000)*100 = 20%
2016
Car price = 12800
Depreciation = 16000 -12800 = 3200
Depreciation % = (3200/16000)*100 = 20%
The required depreciation rate is 20% of car per year. Option b is correct.
Price of car in 2014 is $20000, 2015 is $16000 and 2016 is $12,800.
Rate of depreciation in price of car to be determine.
Rate of depreciation is defined as the rate of declination of the original value with time.
Here,
Rate of depreciation = 20000-16000/20000 * 100
= 4000/2000 *100
= 0.20*100
= 20%
Thus, the required depreciation rate is 20% of car per year.
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