Nestor R. answered • 07/17/19

Statistician with a very good grounding in Algebra

Initial value of the car is $36,000. Depreciation is linear and after 2 years the value is $25,000, a decrease of $11,000 over 2 years or $5,500 per year.

In 2018, the expected value will be $25,000 - $5,500 or $19,500.

The equation for the car's value over time is **v = 36,000 - 5,500t,** where t=time in terms of elapsed years.

The offer of $15,000 for a trade in in 2018 is below the value determined by depreciation.