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In: Statistics and Probability

The​ manufacturer's suggested retail price​ (MSRP) for a particular car is ​$24,950​, and it is expected...

The​ manufacturer's suggested retail price​ (MSRP) for a particular car is ​$24,950​, and it is expected to be worth ​$19,508 in 2 years. ​(a) Find a linear depreciation function for this car. ​(b) Estimate the value of the car 5 years from now. ​(c) At what rate is the car​ depreciating?

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Answer:

Given that:

The​ manufacturer's suggested retail price​ (MSRP) for a particular car is ​$24,950​, and it is expected to be worth​$19,508 in 2 years.

​(a) Find a linear depreciation function for this car. ​

We have two points (0,24950),(2,19508)

The slope =

writing equation in point slope from

b)  Estimate the value of the car 5 years from now

x = 5 years the value of car

c) what rate is the car​ depreciating?

Rate is the car​ depreciating = slope

Rate is the car​ depreciating = -2721 i.e $-2721/year

orchestra answered 2 years ago
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