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A new Honda Civic costs $ 22 , 000 the year it is made. This car depreciates, losing value at a rate of 5 % each year on average. After 3 years, what is the amount the car has lost in value?

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Final answer:

To calculate the total depreciation of the car after 3 years, calculate 5% of its value each year, subtract that from the car's value, and accumulate the total decrease. The Honda Civic has depreciated by a total of $3,137.75 over the 3 years.

Step-by-step explanation:

The question is about calculating the depreciation of a Honda Civic over a period of 3 years at a depreciation rate of 5% per year. To find the total value lost after 3 years, we need to apply the percentage decrease to the initial value of the car for each year.

Initial cost of the car: $22,000

Depreciation rate per year: 5%

Depreciation for 1st year: 5% of $22,000 = $1,100

Value after 1st year: $22,000 - $1,100 = $20,900

Depreciation for 2nd year: 5% of $20,900 = $1,045

Value after 2nd year: $20,900 - $1,045 = $19,855

Depreciation for 3rd year: 5% of $19,855 = $992.75

Value after 3rd year: $19,855 - $992.75 = $18,862.25

Total depreciation over 3 years: $22,000 - $18,862.25 = $3,137.75

The Honda Civic has lost $3,137.75 in value after 3 years due to depreciation.

User Stylize
by
8.0k points
5 votes

Answer: 3300

Step-by-step explanation: Three years is 15%, 15% of 22,000 is 3,300

I think this is the answer, tell me if it works

User Decade Moon
by
8.2k points
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