In buying a new car, one consideration might be how well the price of the car holds up over time Different makes of cars have different depreciation rates One way to compute a depreciation rate for a car is given here Suppose that the current prices of a certain automobile are as shown in the table Use the formula New Old(e Rt ) to find R, the annual depreciation rate, for a specific time t When might be the best time to trade in the car Consult the NADA ( blue ) book and compare two like models that you are interested in Which has the better depreciation rate Age in Years 3 New 4 $28,750 $25,400 $38,000 $36,600 $32,400 $21,200

Question: In buying a new car, one consideration might be how well the price of the car holds up over time. Different makes of cars have

In buying a new car, one consideration might be how well the price of the car holds up over time. Different makes of cars have different depreciation rates. One way to compute a depreciation rate for a car is given here. Suppose that the current prices of a certain automobile are as shown in the table.

Age in Years 3 New 4 $28,750 $25,400 $38,000 $36,600 $32,400 $21,200

Use the formula New = Old(e^Rt) to find R, the annual depreciation rate, for a specific time t. When might be the best time to trade in the car? Consult the NADA ("blue") book and compare two like models that you are interested in. Which has the better depreciation rate?

Age in Years 3 New 4 $28,750 $25,400 $38,000 $36,600 $32,400 $21,200

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