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Provide a summary of your calculator results.
a.
My parents car costs $50000. When I used the calculator the depreciation rates was 15% per year. And then
every year the costs went down:
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i.
50000*(1-0.15)=$42500
ii.
50000*(0.85)^2=$36125
iii.
50000*(0.85)^3=$30706.25
Were you surprised by your car's depreciated value?
a.
I was quite surprised as the values kept on going down fast yearly. I had believed that it would take longer for
the value to go down this much at a yearly stance.
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When do you think a car loses the most value? Why?
a.
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I believe that the car loses the most value whilst the amount of years increases as it keeps going down
How can you model the depreciation of a car? What would be the best model? Why?
a.
We can model a depreciation of a car by a exponential decay. Also, the model and formula of the depreciation
of a car would be to estimate how much value your car has lost, simply subtract the car's current fair market
value from its purchase price, and subtract any sales tax or fees. And the best model would be a exponential
decay as it shows the decline in the value of the car.