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.