Make the following model:
40000-400x < 25000
Plug in some numbers for x.
Suppose a car that sells for $40,000 depreciates 10% per year. How many years would it take for the car to have a value less than $25,000
2 answers
40000(.9)^n < 25000
.9^n < .625
take log of both sides and use log rules
n log .9 < log .625
n < 4.46 yrs
testing:
40000(.8)^4.5 = 24,897.24
40000(.9)^4 = 26244
4000(.9)^5 = 23619.60
So, I would say in 4 1/2 years
.9^n < .625
take log of both sides and use log rules
n log .9 < log .625
n < 4.46 yrs
testing:
40000(.8)^4.5 = 24,897.24
40000(.9)^4 = 26244
4000(.9)^5 = 23619.60
So, I would say in 4 1/2 years