Question

A used car purchased for $4500 is depreciating in value at the rate of $125 per month.

What will the value be after 18 months?

Answer 1

To find the value of a used car after 18 months of depreciation at $125 per month, we multiply the monthly depreciation by 18 and subtract the result from the initial value of $4500. The car will be valued at $2250 after 18 months.

Step-by-step explanation:

To calculate the value of a used car after depreciation over a specific period, we need to subtract the total depreciation from the initial value of the car. The car is initially purchased for $4500 and it depreciates at $125 per month. To find the value of the car after 18 months, we perform the following steps:

1. Calculate the total depreciation over 18 months by multiplying the monthly depreciation rate by the number of months: $125 × 18 months.
2. Subtract the total depreciation from the initial value of the car to get the value after 18 months: $4500 - (total depreciation).
3. By doing the math:

1. Total depreciation = $125 × 18 = $2250.
2. Value after 18 months = $4500 - $2250 = $2250.

Therefore, the value of the car after 18 months will be $2250.