Algebra Word Problem Help Needed........

Question

In the year 2015, Anna bought a new car for $36,000. In 2017, she was told that the value of her car was $25,000 due to depreciation. She is told that the value of her car depreciates linearly.

Find a function V(t) which gives the value of the car t years after the year 2015.
In 2018, Anna is told that she will be given $15,000 for her car if she decides to trade it in for a new car. Use the function from part (1) above to determine the value of her car in 2018.
Is the $15,000 value fair based on what she was told about linear depreciation? Explain your answer?

Answer 1

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.