financial literacy

Question

A holiday trailer depreciates in value between 10% to 15% per year. If your family

purchases a holiday trailer for $29,000.00 and they plan on selling it in 4 year, what is the most that they could expect to sell it for if these depreciation percentages are correct?

Answer 1

Biggest possible price to sel: 29000(1 - 0.1)⁴ = $19026.90