Posted by kaylarae on .
A rule of thumb used by car dealers is that the trade-in value of a car decreases by 30% each year. That is, the value at the end of any year is 70% of its value at the beginning of the year
A.Suppose that you own a car whose trade-in value is presently $2350. How much will it be worth one year from now? Two years from now? Three years from now?
We learned to use the equation y=KM^x+b
I just don’t know what to plug in
According to the rule stated in your first paragraph,
value at end of 1 year = 2350(.7) = ...
value at end of 2 yrs = 2350(.7)^2 = ...
value at end of 3 yrs. = 2350(.7)^3 = ...