Question

A new car worth $25,000 is depreciating (loses value) in value by $1,250 per year. Determine how many years will it take for the car to be worth $8,500?

Answer 1

About 13 years

Explanation:

Every year loses = $1250

Actual Price = $25000

Required worth = $8500

Worth that should be lost = Actual Price -Required worth

= $25000 - $8500

= $16500

Years took to lost $16500 worth = $16500 / $1250

= 13.2 years