Question

An automobile purchased for ​$36,000 is worth ​$2400 after 6 years. Assuming that the​ car's value depreciated steadily from year to​ year, what was it worth at the end of the third​ year? The value 3 years after it was purchased is ​

Answer 1

$19,200.

Explanation:

To find the value of the car at the end of the third year, we can use linear depreciation since the car's value is depreciating steadily from year to year. Linear depreciation means that the value decreases by a consistent amount each year.

Initial value (year 0): $36,000

Value after 6 years: $2,400

Total depreciation over 6 years: $36,000 - $2,400 = $33,600

Depreciation per year: $33,600 / 6 = $5,600

Now, to find the value at the end of the third year (which is 3 years after purchase):

Value at year 0: $36,000

Depreciation over 3 years: $5,600 * 3 = $16,800

Value at the end of the third year: $36,000 - $16,800 = $19,200

So, the car's value at the end of the third year is $19,200.