<PRE><B>Question 888087</B>
4. Mr. Dadar bought a Honda Accord for $25 000. After 12 years, he sells the car for  
    $5 000. What is the annual depreciation rate for the value of his car? 
--------------------------------
FV = PV*(AD)^t  AD = annual Depreciation
5000 = 25000*AD^5
AD^5 = 0.2
{{{AD = root(5,0.2)}}}
AD =~0.72478 --&gt; it&#39;s worth 0.72478*previous year&#39;s worth
Depreciation = 1 - AD = 0.27522 or ~27.5% per year
</PRE>