Question

The Mercedes S class luxury vehicle depreciates by 32.4% after just one year. the starting price in 2015 was $70,000 what is the depreciation amount after one year for the Mercedes S class vehicle

Answer 1

according to formula
P(1 - R/100)^ T
P =PRICE
R =RATE OF DEPRECIATION
T= TIME
answer is $47320

Answer 2

$ 22680

depreciation factor = $\frac{32.4}{10}$ = 0.324

depreciation in 1 year = 0.324 × $ 70000 = $ 22680