In 2017 the price of a particular earlier model car was about $15,905 with a depreciation of about $1,231 per year. A student had $500 in 2017 and saves $1,700 each year. a) Let H(t) be the value, in dollars, of the desired car t in years since 2017. Let S(t) be the student's total savings, in dollars, t years since 2017. Find equations of H and S. b) Set up an equation to predict when the student will be able to buy the car using cash from his savings. State the answer in terms of the year he can buy the car. c) Now assume that the student earns intrest on his savings. Is your answer from part (b) an underestimate or overestimate? Explain.
In 2017 the price of a particular earlier model car was about $15,905 with a depreciation of about $1,231 per year. A student had $500 in 2017 and saves $1,700 each year.
a) Let H(t) be the value, in dollars, of the desired car t in years since 2017. Let S(t) be the student's total savings, in dollars, t years since 2017. Find equations of H and S.
b) Set up an equation to predict when the student will be able to buy the car using cash from his savings. State the answer in terms of the year he can buy the car.
c) Now assume that the student earns intrest on his savings. Is your answer from part (b) an underestimate or overestimate? Explain.
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In 2017 the price of a particular earlier model car was about $15,905 with a depreciation of about $1,231 per year. A student had $500 in 2017 and saves $1,700 each year.
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