Question 1176659
.
<pre>

There are two commonly accepted ways to consider / solve the problems on depreciated values.



One way is to consider a linear model with the slope coefficient m = -0.05.



Another way is to consider exponential decrease of the depreciated value with the multiplication coefficient of (1- 0.05) = 0.95.



In the first case, the depreciate value of the car after 12 years is

    V = 20700 - 0.05*20700*12 = 8,280 dollars.



In the second case, the depreciate value after 12 years is

    V = {{{20700*0.95^12}}} = 11,185 dollars.
</pre>