SOLUTION: You bought a new Honda Accord in April 2018 for $24,500. The car has depreciated at a continuous rate of 13% annually. Now, you want to buy a different car, so it's time to sell yo

Question 1188264: You bought a new Honda Accord in April 2018 for $24,500. The car has depreciated at a continuous rate of 13% annually. Now, you want to buy a different car, so it's time to sell your Honda.
What is the value of the car, to the nearest hundred dollars, in April 2021?
Your neighbor offers you $17,000 to buy your Honda. Is it a good deal? Should you take his offer?

Answer by Alan3354(69443) (Show Source): You can put this solution on YOUR website!
You bought a new Honda Accord in April 2018 for $24,500. The car has depreciated at a continuous rate of 13% annually. Now, you want to buy a different car, so it's time to sell your Honda.
What is the value of the car, to the nearest hundred dollars, in April 2021?
-----------------
That's 3 years. Each year it's worth 87% of the year before.
---
FV = 24500*0.87*0.87*0.87 = 24500*0.87^3
-----------------
Your neighbor offers you $17,000 to buy your Honda. Is it a good deal? Should you take his offer?
"good deal" is not a clearly defined term.

RELATED QUESTIONS
4. Mr. Dadar bought a Honda Accord for $25 000. After 12 years, he sells the car for (answered by Alan3354)

The function f determines the cost (in dollars) of a new Honda Accord given a number of... (answered by ikleyn)

The function determines the cost (in dollars) of a new Honda Accord given a number of... (answered by ikleyn)

Question Link file:///C:/Users/chane/Downloads/mceclip0-1648478439790%20(2).webp... (answered by ikleyn)

Question Link... (answered by ikleyn)

Suppose that when a Honda dealership sells a Honda Accord, the profit the dealership... (answered by Theo)

The value of a car after t years can be found using the formula V = C(1 - r)t, where V is (answered by Boreal)

A vehicle depreciates at a rate of 25% per year. A new car was purchased for $28 500. (answered by josgarithmetic)

In order to buy a new car, you finance $18,000 with no down payment for a term of five... (answered by Theo)