Answer:
Step-by-step explanation:
A residual value is the estimated value of an asset at the end of its useful life. In this case, let's say the residual value of the car is estimated to be $10,000.
To calculate the expected depreciation over time, you would subtract the residual value from the initial cost of the car:
Initial cost of the car: $37,960
Residual value: $10,000
Depreciation = Initial cost - Residual value
Depreciation = $37,960 - $10,000
Depreciation = $27,960
So, over time, the car is expected to depreciate by $27,960 from its initial cost to its residual value.
