In the Blue Book problem, Bill purchased a new Honda Accord in 2007, but now wants to trade it in for the latest model. Bill wants to know what he can expect to get for his trade with his car in good condition and with average miles. To find this out, I’m going to use a linear model to show how the value of his car has decreased after he drove it off the dealer’s lot to the present day. I also need to find the slope of the problem to find out how much the car loses value each year. To find out what Bill can expect for his trade, I need to solve what happens to the value of the car once it’s drove off the dealer’s lot. I plan to solve this by going through a series of steps by starting with using the variable t for the age of the car in years, and using the variable v for trade in value. I know that the trade in value for the new model of the car (2006) is $14,670, the trade in value for the old model (2000) is $5,850, and the manufactures suggested retail price is $19,500. My solution plan is to find the x and y intercept, a domain, and the slope to create a linear model to get my results.
The first step I am going to take is to subtract the trade in value of the 2000 model from the 2006 model to find out how much value the car lost over the 6 years. When I subtract $5,850 from $14,670, I get $8,820. Then, I divide $8,820 by the age of the car, 6 years, to find out how much value the car loses each year. When I divide $8,820 by 6, I get the slope which is $1,470. The next step I take is to subtract the amount of the trade in value of the 2006 model from the manufactures suggested retail price, which is $4,830. Now I can subtract the slope from $4,830 to find out the value the car loses once the car is driven off the lot. I find that the value the car loses once it’s driven off the lot is $3,360, so I can subtract $3,360 from the manufactures suggested retail price, $19,500, to get the value of the car when it drives off the lot, which... [continues]
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