Mr. Keller bought a car for $20,000. A study shows that a car will depreciate (go DOWN in value) by 15% each year. How much is Mr. Keller’s car worth after 5 years?
A) Formula used:
B)Substitute values:
C) Final answer
D) Does this final answer make sense compared to the original cost of the car? Why?
E) DESCRIBE (using a complete sentence or two) how you can solve this problem graphically.
Please answer all
Average annual value lost: $7,390.65First-year depreciation: $3,000.00Total depreciation: $11,125.89Total depreciation percentage: 55.63%Value of vehicle at end of ownership period: $8,874.11 see attachment for graph
