Juan is deciding between two cars to purchase. Car a depreciates annually at a rate of 3.5%, while car b depreciates monthly at a rate of 0.32%. Which car is the better deal?

Question

Mathematics

Miranda Herring

13 February, 07:35

Juan is deciding between two cars to purchase. Car a depreciates annually at a rate of 3.5%, while car b depreciates monthly at a rate of 0.32%. Which car is the better deal?

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Answers (1)

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Jacqueline Mcguire · Answer 1

It is better to deal of car A.

Step-by-step explanation:

Depreciates rate of car A = 3.5% annually

Depreciates rate of car B = 0.32% monthly = 0.32 * 12 = 3.84 % annually

Depreciates rate of car A = 0.035

Depreciates rate of car B = 0.0384

Since the depreciate rate of car A is less than the depreciate rate of car B.

So it is better to deal of car A.