the depreciation factor is r, where
r^6 = 2800/31000 = 0.090
The value after 3 years is thus
31000 * r^3
= 31000 * √.09
= 31000 * .3
= 9300
An automobile purchased for $31,000
is worth $2800
after 6
years. Assuming that the car's value depreciated steadily from year to year, what was it worth at the end of the third year?
1 answer