Question

The value of a car decreases $500 for every 1,000 miles it is driven. The current value of the car is $23,000, and the car is driven an average of 10,000 miles per year. What will be the value of the car, in dollars, at a point in time y years from now?
A) $23,000 − $500y

B) $23,000 − $0.02y

C) $23,000 − $5,000y

D) $23,000 − $0.0002y

Answer 1

Answer: C

Step-by-step explanation:

If we know the value of the car decreases $500 for every 1,000 miles, and that the car is driven about 10,000 miles every year, that means that you need to take the total value of the car (23,000) and subtract it from the amount of money it is losing per year. Again, the car is driven about 10,000 miles per year, so that means that the car will most likely continue to be driven 10,000 miles per year. If you do the math, for one year, the value of the car will drop $5,000 ($500 x 10, because it is $500 per every 1,000 miles) So, for each year, you can just multiply the number of years by $5,000 to find out how much the vehicle has depreciated over time.

Hope this helped you and made sense! Feel free to ask me any questions you have!