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Drupady [299]
3 years ago
8

John bought a 2-year-old car for £ 12 000. Three years later he decides to sell the car; “I think that the value of the car is i

nversely proportional to its age”. John estimates the value of the car using this idea. The actual value of the car depreciates by 20% each year. Work out the difference between John’s estimate and the actual value.
Mathematics
1 answer:
lions [1.4K]3 years ago
7 0

Answer:

Actual value after 5 years is £1344 more than John's value.

Step-by-step explanation:

Johns estimate:-

V = k/t (inverse proportionality)   where V = value of the car and t = it's age.

When t = 2, V = £12,000:-

12,000 = k/2 giving k = 24,000

Therefore the value at 5 years of age, according to John's proposition is

V = 24,000 / 5  =  £4,800

The actual value using the given depreciation is

12000(1 - 0.2)^3 = £6144

Difference is  £1344

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