Work Step by Step
An automobile was purchased for $\$34,800$. $7$ years later, it's worth $\$8550$. The difference in the prices is: $34,800-8550=26,250$ dollars. Assuming the car's value depreciated steadily, it depreciated at the rate of: $26,250\div7=3,750$ dollars per year. This would make the car's price after 3 years: $34,800-3*3,750=34,800-11,250=23,550$ dollars.