Question

A college professor has purchased a new car for commuting to class. This bicycle had a purchase price of $25000 and depreciates at a constant rate of $1550 a year. What is the bicycle's value after 4 years? How long before the bicycle is worth zero?

Answer 1

Explanation:

A college professor has purchased a new car for commuting to class. This bicycle had a purchase price of $25,000 and depreciates at a constant rate of $1550 a year. What is the bicycle's value after 4 years? How long before the bicycle is worth zero?

25,000 - 1,550y

25,000 - 1,550(4)

25,000 - 6,200

= $18,800 after 4 years

0 = 25,000 - 1,550y

-25,000 = - 1,550y

y = 16.129 years (rounded to three places)