Question

Sam bought a car for $25,000 in 2009. Since then the car has depreciated in value by $1,500 a year. Write a function that will allow you to calculate how much the car will be worth in 5 years if we let it 2009 be t=0

Answer 1

Answer: The car has a value of $17,500.

Explanation: The car was originally bought at $25,000 and was depreciated over 5 years by $1,500 a year. Over 5 years, the car would be depreciated by a total of $7,500 because $1,500 x 5 years equals $7,500 in total. Since you would distract the total depreciation cost from the original value to find the current value of the car, after 5 year of use, the car would be worth $17,500.