A car is worth $20,000 at the time of purchase. 10 years later, it is worth $3,000. Assuming a constant rate of deprivation, how much value does the car lose each year?

Question

Quizplus · Accepted Answer

When calculating loss of value, first we find the amount the value changed by: $20,000 - $3,000 = $17,000 Then we divide the change in value by the time: ^$17,000/_{10 years} = $1,700 each year

A Car Is Worth $20,000 at the Time of Purchase