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?
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That's 3 years. Each year it's worth 87% of the year before.
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FV = 24500*0.87*0.87*0.87 = 24500*0.87^3
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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.
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