Asked by Haley Van Roekel on Jun 28, 2024
Verified
Lawrence recently purchased a new car for $32,000.His research through Kelly Blue Book gave him a straight-line depreciation model of y = −3,500x + 32,000.He hopes to sell the car after its value has decreased by 40%.Lawrence's car payment is $630 per month for 60 months.How many months will it take before he tries to sell his car? If he is successful in selling the car for his goal price,what will the cost of the car have been per month after he pays off his loan?
Straight-Line Depreciation
A method of allocating the cost of a tangible asset over its useful life in an equal amount each year.
Kelly Blue Book
A guide that provides values, pricing, and information for automotive vehicles, helping consumers and dealers determine fair prices.
Car Payment
The monthly payment made by a borrower to a lender or financier for the loan used to purchase a vehicle.
- Calculate vehicle depreciation and the cost implications over time.
Verified Answer
MS
Learning Objectives
- Calculate vehicle depreciation and the cost implications over time.