Question

2. In 2004 Mr. Martin bought a Honda Civic for $19,200. In 2015 the car was valued at $4,300. Assuming normal wear and tear, calculate the following, showing all work:
a. The rate of depreciation.
b. The value of the car in 2017.

Answer 1

How many years were there from 2004 to 2015?
during this period, by how much did the car depreciate? Find a dollar amount.

Show all work done, please.

Answer 2

11 years

Answer 3

Depreciation amount? See "19,200. In 2015 the car was valued at $4,300"

Answer 4

yes I see

Answer 5

$19,200
- 4,300
-----------

?

Answer 6

14,900

Answer 7

So the decreate in value from $19,200 over 11 years was $14,900.

We have to determine the "depreciation rate." How would you do that?

Answer 8

divide by 11?

Answer 9

Divide what by 11?

Answer 10

19,200

Answer 11

But if you divide $19,200 by 11 years, you indicate that the car has no residual value.

Answer 12

so divide by the 14,900

Answer 13

Not quite; instead, divide $14900 by 11.

Answer 14

okay so what do I do next