Question

Sasha bought a car for $22,995. Six years later, the car was worth $12,645. If the depreciation was linear (straight-line depreciation method), by how much did the value of the car go down each year? What would the car have been worth after four years?

Answer 1

The value of the car went down by $1,625 each year. After four years, the car would be worth $16,495.

Step-by-step explanation:

The value of the car depreciated linearly over the six-year period. To find the amount the car depreciated each year, we can calculate the difference in value between the initial value and the final value, and then divide that difference by the number of years.

Depreciation per year = (Final value - Initial value) / Number of years
Depreciation per year = ($12,645 - $22,995) / 6
Depreciation per year = -$1,625

Therefore, the value of the car went down by $1,625 each year.

To find the value of the car after four years, we can subtract the depreciation per year from the initial value for each year.

Value of the car after four years = Initial value - (Depreciation per year * Number of years)
Value of the car after four years = $22,995 - ($1,625 * 4)
Value of the car after four years = $22,995 - $6,500
Value of the car after four years = $16,495