Question

A brand new car costs $35,000$. For the first $50,000$ miles, it will depreciate approximately $0.15$ per mile driven. For every mile after that, it will depreciate by $0.10$ per mile driven until the car reaches its scrap value. Find the net worth of the car after it is driven $92,000$ miles.

• A. $\$11,300$
• B. $\$13,800$
• C. $\$17,000$
• D. $\$23,300$

Answer 1

The correct option is D $\$23,300$

Given the cost of car $=35000$

First $50000$ miles it will depreciated app $0.15$ per mile

And After that it will depreciate by $0.10$ per miles

Then depreciate after $50000$ miles = $50000\times 0.15=7500$

And depreciate after $92000-50000=42000$ miles $=$ $42000\times 0.10=4200$

Total depreciate after $92000$ mole $=7500+4200=11700$

Then worth after it is driven $92000=35000-11700=23300$