Final answer:
The original price of the car was $23,245, which is calculated by adding the current value of $15,425 to the total depreciation over 4 years ($1,955 per year) resulting in an additional $7,820.
Step-by-step explanation:
The question asks us to determine the original price of a car purchased by a Taxi company that depreciates in value over time. The current given data are the car's current value, which is $15,425, and the annual depreciation of $1,955. Moreover, it states that 4 years have passed since the purchase. The formula to find the original price is:
Original Price = Current Value + (Depreciation × Time Passed)
Original Price = $15,425 + ($1,955 × 4 years)
Original Price = $15,425 + $7,820
Original Price = $23,245
Thus:
- Current Value: $15,425
- Value of Depreciation: $7,820 ($1,955 per year for 4 years)
- Original Price: $23,245
- Time Passed: 4 years