Answer:
Depreciation rate = 16.32%
Step-by-step explanation:
First we calculate the annual depreciation of the car
Annual Depreciation = (Cost of car – Net Scrap Value of car)/Useful Life
Details
Cost of Car= $14850
Net scrap Value of car= $3,960
useful Life=4
Thus: Annual Depreciation = ($14850-$3,960)/4
= $2,722/year (Annual Depreciation)
Rate = Annual Depreciation/Cost of car X 100%
= $2,722/$14,850 X 100%
Depreciation rate = 16.32%
