Question

I need help with number 43 I do not understand word problems much

Answer 1

We are asked to determine the depreciation rate of two used cars. Let's remember that the depreciation rate of any item is given by the following formula:

`D=(V_2-V_1)/(t)`

Where:

`\begin{gathered} V_2=end\text{ value} \\ V_1=\text{intial value} \\ t=\text{time betw}een\text{ 1 and 2} \end{gathered}`

That means that the depreciation rate is how much the value of an asset changes per unit of time.

For car A we have:

`\begin{gathered} V_1=19190 \\ V_2=9970 \\ t=3 \end{gathered}`

Replacing in the formula we get:

`D=(9970-19190)/(3)`

Solving the operation:

`D=-3073.33\text{ per year}`

This means that car A losses $3073.33 every year.

To determine the value of car A in 3 years, we need to multiply the depreciation rate by 6 years and subtract that from the initial value of the car, since the car is already 3 years old, therefore, the value in three years from now is:

`V_3=V_1-6D`

Replacing:

`\begin{gathered} V_3=19190-6(3073.33) \\ V_3=750 \end{gathered}`

Therefore, the value in three years for car A is $750