Jamie bought a car in 2005 for $28,500. By 2008 the car was worth $23,700. Based on a linear model, what will the value of the car be in 2012?
Mathematics · Middle School · Tue Nov 03 2020
Answered on
Given the statement:
Jamie bought a car in 2005 for $28,500. By 2008 the car was worth $23,700.
Determine the worth of a car in 2012
Solution:
Determine first the depreciation amount per year. This can be done by subtracting 23700 to 28500 and dividing the difference by 3 since the span is from 2005 to 2008
= $28500 -$23700
=$4800
=$4800/3
=$1600
The depreciation value is 1600 per year, hence we can take determine the car's value by multiplying 1600 by 7, since the span is from 2005 to 2021, then subtracting the product to the original value.
= ($1600)(7)
=$11,200
=$28,500 - $11,200
=$17,300
Final answer:
The value of the car in 2012 is $17,300