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7. A new car depreciates as soon as you drive it out of the parking lot. A certain car depreciates to

half its original value in 4 years. If you bought a car 8 years ago and it is now worth $5,000, how

much did you pay for the car originally?

1 Answer

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Given :

A new car depreciates as soon as you drive it out of the parking lot. A certain car depreciates to half its original value in 4 years. If you bought a car 8 years ago and it is now worth $5,000.

To Find :

How much did you pay for the car originally.

Solution :

Let, original price is x.

It is given that price gets half after 4 years.

So, price after 8 year is, P = x/4 .

x/4 = 5,000

x = $20,000

Therefore, price of new of car is $20,000.

Hence, this is the required solution.

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