SOLUTION: A tractor that 4 years ago cost $8000, is now worth only $3200. Find the average annual rate of depreciation. Thank You!

Algebra ->  College  -> Linear Algebra -> SOLUTION: A tractor that 4 years ago cost $8000, is now worth only $3200. Find the average annual rate of depreciation. Thank You!       Log On


   

Question 300204: A tractor that 4 years ago cost $8000, is now worth only $3200. Find the average annual rate of depreciation.
Thank You!
Answer by mananth(16946) About Me  (Show Source):
You can put this solution on YOUR website!
A tractor that 4 years ago cost $8000, is now worth only $3200. Find the average annual rate of depreciation.
the depreciation amount in 4 years is $4800
On 8000 the depreciation is 4800
for one year it is 1200
100*1200 / 8000
=15%