Question

you have decided to purchase a new toyota 4Runner for $25635.You have promised daughter that the suv will be hers when the car is worth $10000.According to your car dealer the suv will depreciate in value approximately $3000 per year.If your daughter is current 15 year old,how old she be when the 4runner will be hers?

Answer 1

$25635-$10000=$15635

$15635÷$3000=5.21 years

15 + 5.21 =20.21 years old

ans; She will own the 4runner when she is 20 years old

Answer 2

price of new car $25635

depreciation rate= $3000 / month

target price= $10000

daughters' age= 15 years old

• time required= (25635-10000)/3000 ≈ 5.2 years

daughter will be:

• 15+5.2= 20.2 years old

if exact time is required then 20.2 is the answer

if depreciation is calculated at the end of the year, then 21 is the answer