Question

Using the values from the graph, compute the values for the terms given in the problem. Percentage of Market Value of Car (solid line) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0 Maintenance and Repair Costs as Percentage of Car's Value (dashed line) Ist yr. 2nd yr: 3rd yr. 4th yr. 5th yr. 6th yr. 7th yr. 8th yr. 9th yr. 10th yr. Age of car = 5 years. Original cost = $16,995. The current market value is $ O 13,596.00 0 3,399.00 5,098.50 11,896.50

Answer 1

We can use the graph to find the percentage of the value that correspond to a 5-year-old car in respect to its original value.

For a car that is 5 years old, its value is 20% of the original value.

If the original value is $16,995, we can calculate its actual value multypling its original price by the proportion of value that we have taken from the graph:

$V=0.2\cdot16,995=3,399$

Answer: the current market value is $3,399.