Your car is expected to be worth $ 15,000 after 1 years and $9,000 after 3 years. What will the baseball card be worth after 5 years? How much is the card worth today?
| This is an depreciation problem because the car is worth less after 3 years than after 1 years. Let x = years and y = value in dollars | ||
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Solve |
Step |
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(1, 15000) and (3, 9000) |
We have two points | |
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First find the slope using the slope formula | |
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using the points (1,15000) and (3,9000) | |
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y - y1 = m(x – x1) |
Now use point- slope form | |
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y – 9,000 = -3,000(x – 3) |
Use either point (3, 9000) | |
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y – 9,000 = -3,000x + 9,000 |
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y = -3,000x + 18,000 |
Solve for y (slope-intercept form) | |
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After 5 years Þ y =
-3,000(5) + 18,000 = -15,000 + 18,000 = $3,000 Worth
today Þ y = -3,000(0)
+ 18,000 = 0 + 18,000 = $18,000 |
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