The Annual Rate of Depreciation R on a Car That

Multiple Choice

The annual rate of depreciation r on a car that is purchased for P dollars and is worth W dollars t years later can be found from the formula: The car depreciates in value according to the following depreciation table. AGE IN YEARS VALUE IN DOLLARS new 3 7,750 5,200 Find the annual rate of depreciation. Round the answer to the nearest tenth.

A) 11.4%
B) 14.2%
C) 30.2%
D) 22.4%
E) 12.5%