An automobile purchased for ​$31,000

Question

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?

Answer 1

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