The given statement is FALSE.
( Since, the annual rate of depreciation is 7%)
We are given a function p(t) which is represented as:
p(t)=5000(.93)^t
where p(t) is the value of a motor scooter t years after it is purchased.
we know that depreciation is the amount that has been deducted from the cost of an item.
Hence, here after looking at the function p(t) we could see that 7% of the amount has been deducted each year and the value of the motor scooter is 93% of the amount of the previous year.
Hence, the annual rate of depreciation is:
7%
