Question

Suppose a new car that costs $25,000 depreciates by 12% each year. In about how many years will the car be worth $15,000? Use the equation 15,000 = (25,000)(0.88)x and round the value of x to the nearest year.

Answer 1

Because the equation is already set up, we get a jump start on this problem!

15000 = (25000)*(.88)*(x)

To solve for x, we just need to get x alone on its side! Our first step should be to divide both sides by 25000, which turns the equation into:

.06 = (.88)*(x)

Next, we need to divide both sides by .88 which should get x all alone, giving us our answer!

.68181... = x!

Because the question says to round the answer to the nearest year, it would take 1 year for the car's value to depreciate to $15000.

Answer 2

0.12 x 3 years = 0.36

0.36 X $25,000 = $9,000

25,000 - 9000 = $16,000

so its 3 1/2 years