An automobile purchased for $22,000 is worth $2500 after 5 years. Assuming that the car's value depreciated steadily from year to year, what was it worth at the end of the third year?

Question

Math problems from Math class 1103 which is a college class

Answer 1

2500 = 22,000e^5r

250/2200 = e^5r

ln(25/220) = 5r

r = -0.435

x = 22,000e^3(-.435) = about $5,967 at the end of 3 years