Answer: decay factor = 0.92
Step-by-step explanation:
Given that the car depreciates at a rate of 8% per year.
What is the decay factor?
Since the car depreciation the value of the car will reduce. The decay will be represented as:
1 - %8 = 1 - 8/100
= 1 - 0.08
= 0.92
Therefore the decay factor = 0.92 which is option A
