The price of a car was \(\$40,000 \) in 2011, \(\$35,000 \) in 2012 and \(\$30,000\) in 2013. What is the rate of depreciation of the price of car?

(A) 12.5 %

Explanation

Since the price is decreasing by \(\$5000\) every year, so 5000/40000 = 0.125 or 12.5%

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