Question

An automobile purchased for $34,800 is worth $8550 after 7 years. Assuming that the car's value depreciated steadily from year to year, what was it worth at the end of the third year?

Answer 1

I've calculated how much the car depreciated every year which is about $3,757
In three years, that is 11,271.
$34,800 - $11,271= $23,528
The automobile cost $23,528 at the end of the third year.

Answer 2

The car's worth at the end of the third year is $23550.

Explanation:

An automobile purchased for $34,800 is worth $8550 after 7 years.

So, annual depreciation was =
`(34800-8550)/(7)`

=
`(26250)/(7)` = $3750

So, in 3 years this depreciation value would have been =
`3750*3=11250` dollars

Hence, the value of the car at the end of the third year =
`34800-11250=23550` dollars

The car's worth at the end of the third year is $23550.