Question

Alexandria purchased her first new car for $27,500. She estimated that the car decreased by the same amount each year. After 4 years, the estimated value is $13,500. What is the annual decrease in the car's value?

A. $3,500
B. $3,250
C. $3,000
D. $2,750

Answer 1

To determine the annual decrease of Alexandria's car, subtract the estimated value after 4 years ($13,500) from the original price ($27,500) to find the total decrease of $14,000. Dividing this by 4 years gives an annual decrease of $3,500, making answer A correct.

Step-by-step explanation:

The student wants to calculate the annual decrease in the value of Alexandria's new car for $27,500. To find this, we need to determine how much the car's value dropped over the 4 years until the estimated value is $13,500. To calculate the annual decrease, subtract the final estimated value from the original cost and then divide by the number of years to find the decrease per year:

• Original price: $27,500
• Estimated value after 4 years: $13,500
• Decrease in value = Original price - Estimated value after 4 years
• Decrease in value = $27,500 - $13,500 = $14,000
• Annual decrease = Decrease in value / Number of years
• Annual decrease = $14,000 / 4 years = $3,500

Hence, the correct answer is A. $3,500.