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Assume your car will lose 30% of its market value the first year and further lose $4,000 each year thereafter (i.e. by the end of
Assume your car will lose 30% of its market value the first year and further lose $4,000 each year thereafter (i.e. by the end of the first year, your used car can will be sold for $25,000 (1-30%) = $17,500 on the used car market; and will be sold for $17,500-$4,000=$13,500 on the used car market by the end of year 2; and so on).How much will your used car be worth by the end of year 3 and year 4? Please fill the used car value in the market value schedule.
| Year 1 | Year 2 | Year 3 | Year 4 |
Ending Car Value
| $17,500 | $13,500 |
|
|
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