How much did car cost when new


Problem

A car depreciates by 40% in the first year, 30% in the second year and 20% thereafter. I buy a car for $14 700 when it is 2 years old.

(a) How much did it cost when new?

(b) After how many years will it be worth less than 25% of the amount that I paid for it?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: How much did car cost when new
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