SOLUTION: A Truck that cost $27,600 when new will have no salvage value after 12 years. Find the annual rate of depeciation. Can anyone give me a hand with this one? Thanks

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Question 57861This question is from textbook college algebra
: A Truck that cost $27,600 when new will have no salvage value after 12 years. Find the annual rate of depeciation.
Can anyone give me a hand with this one? Thanks This question is from textbook college algebra

Found 2 solutions by funmath, rcmcc:
Answer by funmath(2933) (Show Source):
You can put this solution on YOUR website!
A Truck that cost $27,600 when new will have no salvage value after 12 years. Find the annual rate of depeciation.
The rate of depreciation is:
r=(final worth-initial worth)/(final time-initial time)
It's the slope formula, if you know that one:
your final worth is:0
your initial worth is:$27,600
your final time is:12 yr
Your initial time is: 0

r=-$2,300 per year.
That means it goes down in value, $2,300 per year.
Happy Calculating!!!

Answer by rcmcc(152) (Show Source):
You can put this solution on YOUR website!
this equation can be calculated the same way we calculate simple interest.
use the equation a=p+prt
where p is the principle amount r is the rate of decrease and t is the time in years. and A is 0
substitute the values in for the equation
0=27600+(27600)(r)(12)
subtract 27600 from each side
-27600=(27600)(r)(12)
divide both sides by (27600)(12) to isolate r
-27600/(27600)(12)=r
r=-0.08333333
or r is 8.33333333% decrease per year