Question

A new car is purchased for $29,000 and over time its value depreciates by one halfevery 3.5 years. What is the value of the car 20 years after it was purchased, to thenearest hundred dollars?

Answer 1

Answer: 600

Explanation:

Answer 2

The annual depreciation can be found:

`3.5years\to(29000)/(2)=14500^{}`
`\begin{gathered} 7years\to(14500)/(2)=7250 \\ \end{gathered}`
`10.5years\to(7250)/(2)=3625`
`14years\to(3625)/(2)=1812.5`
`17.5years\to(1812.5)/(2)=906.25`
`21years\to(906.25)/(2)=453.125`

Now, using cross multiplication:

21---------------------->453.125

20------------------------>?

`\begin{gathered} (21)/(20)=(453.125)/(?) \\ \text{?}=863.095 \end{gathered}`

The value of the car will be $863