I purchased a car for $20,000. At year 5 the car was worth $10,000. How much will it be worth at 7years?
It lost 1/2 its value in 5 years. Using a linear model, that is
1/10 each year.
So, in 7 years, it will have lost 7/10 of its initial value.
1/10 each year.
So, in 7 years, it will have lost 7/10 of its initial value.