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Math..urgent.pls help!:(

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A Volkswagon Beetle convertible sedan is worth $16,615 now and is expected to be worth $8950 in 4 years.
a) find a linear depreciation function for this car.
b) estimate the value of the car 5 years from now
c.) at what rate is the car depreciating?

thanks in advance people!

  • Math..urgent.pls help!:( -

    let the rate of depreciation be r
    8950 = 16615(1+r)^4
    .5386699 = (1+r)^4
    take 4th root
    .8567 = 1+r
    r = -.1432

    so the annual rate of depreciation is 14.32%

    in 5 years
    value = 16615(1-.1432)^5 = 7667

  • Math..urgent.pls help!:( -

    thank you for the help!!

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