c. What is the approximate trade-in value of a $$ \$ 20,000 $$ car after 2 yr ? The trade-in value of a $$ \$ 20,000 $$ car after 2 yr is $$ \$ \square $$.

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UpStudy AI · Accepted Answer

To estimate the approximate trade-in value of a **\$20,000** car after **2 years**, we need to consider typical depreciation rates. Here's a step-by-step approach:

### **1. Understanding Depreciation**

Cars typically lose value over time, and depreciation rates can vary based on the make, model, and condition of the vehicle. A general guideline for depreciation is:

- **First Year:** Approximately **20-30%** depreciation.
- **Each Subsequent Year:** Around **15-20%** depreciation per year.

### **2. Calculating Depreciation Over 2 Years**

Let's use an average depreciation rate for our calculation:

- **First Year Depreciation:** 25%
- **Second Year Depreciation:** 15%

**Step 1:** Calculate the value after the first year.

$$
\text{Value after 1 year} = \$20,000 \times (1 - 0.25) = \$20,000 \times 0.75 = \$15,000
$$

**Step 2:** Calculate the value after the second year.

$$
\text{Value after 2 years} = \$15,000 \times (1 - 0.15) = \$15,000 \times 0.85 = \$12,750
$$

### **3. Approximate Trade-In Value**

Based on the calculations:

$$
\text{The trade-in value of a \$20,000 car after 2 years is approximately \$12,750.}
$$

**Rounded for Simplicity:**

$$
\$12,750 \approx \$13,000
$$

### **Final Answer**

The trade-in value of a **\$20,000** car after **2 years** is approximately **\$13,000**.
The trade-in value of a \$20,000 car after 2 years is approximately \$13,000.

c. What is the approximate trade-in value of a \( \$ 20,000 \) car after 2 yr ? The trade-in value of a \( \$ 20,000 \) car after 2 yr is \( \$ \square \).

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