Thread: Data Analysis/Statistics

The following shows how the value of a car depreciates each year. Find the trade-in value of a car for each 5 yr. The percents given are based on the selling price of the new car...

a. What is the approximate trade-in value of a $12,000 car after 1 yr if the selling price of a new car is 70%?

b. How much has a $20,000 car depreciated after 5 yr if the selling price of a new car is 30%?

c. What is the approximate trade-in value of a $20,000 car after 4 yr if the selling price of a new car is 35%?

d. Dani wants to trade in her car before it loses half its value. When should she do this?

My answers are: a. $8,400 b. $6,000 c. $13,000 d. Within 2 years.
Do any of my answers appear to be correct? Thank you.

Originally Posted by mathmagic

The following shows how the value of a car depreciates each year. Find the trade-in value of a car for each 5 yr. The percents given are based on the selling price of the new car...

a. What is the approximate trade-in value of a $12,000 car after 1 yr if the selling price of a new car is 70%?

Please reword these so that they make sense, the phrase "if the selling price of a new car is 70%" in this context makes no sense. Presumably the $12000 was the price paid for the car when new and the selling price was 70% of the new price or $8400.

CB

Originally Posted by mathmagic

The following shows how the value of a car depreciates each year. Find the trade-in value of a car for each 5 yr. The percents given are based on the selling price of the new car...

a. What is the approximate trade-in value of a $12,000 car after 1 yr if the selling price of a new car is 70%?

b. How much has a $20,000 car depreciated after 5 yr if the selling price of a new car is 30%?

c. What is the approximate trade-in value of a $20,000 car after 4 yr if the selling price of a new car is 35%?

d. Dani wants to trade in her car before it loses half its value. When should she do this?

My answers are: a. $8,400 b. $6,000 c. $13,000 d. Within 2 years.
Do any of my answers appear to be correct? Thank you.

For (d) 2 years is a good guess if we are restricted to integer numbers of years, but in fact there is insufficient information to set up a model that would allow us to discriminate between 1, 2 or 3 years.

CB

Thank you. I apologize about the confusion but the percentages represented the percent of the selling price of the new car which was on a graph. But when I previously graphed the information and posted it, it didn't come out right. I tried to word it the best way I could, but thanks for the advice.