Work Step by Step
An automobile was purchased for $\$23,000$. $7$ years later, it's worth $\$2700$. The difference in the prices is: $23,000-2700=20,300$ dollars. Assuming the car's value depreciated steadily, it depreciated at the rate of: $20,300\div7=2900$ dollars per year. This would make the car's price after 3 years: $23,000-3*2900=23,000-8700=14,300$ dollars.