SOLUTION: Anne purchased a new truck for $16,500. She sold it 6 years later for $3,700. Find the annual rate of depreciation on the truck. Thanks

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Question 307040: Anne purchased a new truck for $16,500. She sold it 6 years later for $3,700. Find the annual rate of depreciation on the truck.

Thanks
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!
First, take the difference of the two values to get 16500-3700=12800. This means that over 6 years, the truck has lost $12,800 in value. Now just divide this number by 6 to find the annual rate of depreciation: 12800%2F6=2133.33333 and round to the nearest penny to get 2133.33. So the truck has lost about $2133.33 per year.