You bought a used car for $8750, 2 years later the car was valued at $6150. Find the rate of change in the car's value

Question

Write an equation to model the value of the car after x years.

 

What will the car's value be 5 years from now?

Answer 1

The assumption is that depreciation is linear (actually it is not):

(8750 - 6150) / 2

2,600 / 2

1,300

The car depreciates $1,300 / year.

5(1300)

6500

 

8750 - 6500

2,250

 

After five years he car is worth two thousand two hundred fifty dollars.