Depreciation of BMW and Mercedes cars is given in the following table: (a) Calculate the average rate

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Depreciation of BMW and Mercedes cars is given in the following table:

Age BMW 525i Mercedes 200E Current 22 275 21 900 1 year 2 years 3 years 4 years 5 years 18 600 19 700 15 200 16 625 12 600 13 950 9 750 11 600 8 300 10 300

(a) Calculate the average rate of depreciation of each type of car.

(b) Use the calculated depreciation rates to estimate the value of the car after 1, 2, etc. years of age. How does this match the actual values?

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Statistics For Economics Accounting And Business Studies

ISBN: 978027368308

4th Edition

Authors: Michael Barrow

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Question Posted: Aug 25, 2020 08:06 AM

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Depreciation of BMW and Mercedes cars is given in the following table: (a) Calculate the average rate

Question:

Age BMW 525i Mercedes 200E Current 22 275 21 900 1 year 2 years 3 years 4 years 5 years 18 600 19 700 15 200 16 625 12 600 13 950 9 750 11 600 8 300 10 300

Step by Step Answer:

a To calculate the average rate of depreciation of each type of car we can use the formula Average Rate of Depreciation Initial Value Resale Value Age ...View the full answer

Statistics For Economics Accounting And Business Studies

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