A new $12,000 automobile decreases in value every year. What is it's value 7 years from now?
You need to specify HOW MUCH the value decreases. My personal experience is that I lose about $5,000 when I drive a new car off the show room floor. :-(
To find the value of the automobile 7 years from now, we need to calculate the annual decrease in value and subtract that from the initial value.
Given that the automobile decreases in value every year, we need to determine the rate of decrease. If we assume a constant rate of decrease, we can divide the initial value by the number of years to find the annual decrease.
Annual decrease = Initial value / Number of years
In this case, the initial value of the automobile is $12,000, and it decreases over a period of 7 years.
Annual decrease = $12,000 / 7
Next, we need to calculate the value after 7 years. We can multiply the annual decrease by the number of years and subtract it from the initial value.
Value after 7 years = Initial value - (Annual decrease * Number of years)
Value after 7 years = $12,000 - (Annual decrease * 7)
Now, we can substitute the value of the annual decrease we calculated earlier into the equation.
Value after 7 years = $12,000 - (($12,000 / 7) * 7)
By simplifying the equation, we find:
Value after 7 years = $12,000 - $12,000
Therefore, the value of the automobile 7 years from now would be $0.