Depreciation and Automobiles. Suppose you buy a new car for $28 comma 000. One year later...
Depreciation and Automobiles. Suppose you buy a new car for $28 comma 000. One year later it is worth $22 comma 400, and two years later it is worth $20 comma 160. The depreciation on the car
A.
rises for the second year.
B.
is 20 percent for the first year.
C.
cannot be determined.
D.
is 20 percent in the second year
Homework Answers
The depreciation on the car in the first year = 28000-22400/28000*100 = 20%
option(B)
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