How much should I sell my car for in 5 years if I buy it for $40,000 and want to lose no more than 10% per year in depreciation?

Expert Solution

Year 1 value of car after depreciation = 90% of 40,000 = 36,000

Year 2 value of car after depreciation = 90% of 36,000 = 32,400

Year 3 value of car after depreciation = 90% of 32,400 = 29,160

Year 4 value of car after depreciation = 90% of 29,160 = 26,244

Year 5 value of car after depreciation = 90% of 26,244 = 23619.6

So after 5 years, the car value is 23619.6 post depriciation. So the selling price should also be the same.

jeff jeffy answered 2 years ago

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Question

How much should I sell my car for in 5 years if I buy it for $40,000 and want to lose no more than 10% per year in depreciation?

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