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A car cost $20,000 when it was purchased. The value of the car decreases by 8% each year. Find the rate of decay each month and select the correct answer below.

Answer :

Given:

The cost of the car is $20,000 when purchased.

The value of the car decreases by 8% every year.

The rate for one year decay is 0.08.

thus, the Rate of decay per month shall be 0.08 /12 =0 .0066667.

hence,the rate of decayn shall be 0.66667%

Since it is decreased it is negative.

the rate of decay every month shall be - 0.666667%.

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