Answer:
A) Missing Table Values. See the attached worksheet
B) The car will be worth less than $8,000 in 9.8 years
Explanation:
Part B: Years until car is less than $8,000
The new $25,000 car depreciates by 11% each year. Expressed another way, it retains 89% of its value each year. The value, y, after x years can be calculated from:
y = ($25,000)*(0.89)^x
This function is graphed on the attached worksheet. The line intersets the $800 on the y axis at 9.8 years. The car will be worth less than $8,000 after 9.8 years.
One can also calculate the value of x:
$,8000 = ($25,000)*(0.89)^x
x = 9.77, mathematically
Part A: Table of values
See the attached worksheet. The values are not exactly a straight line, but come close to f(x) = 8x+50, from which the missing values may be calculated. Legally, however, this is a slightly more complex line, for which I'm unclear about the best approach for its derivation.