Please help me find the proper equation. I'm not sure if the proper equation should be a linear or exponential equation.
Here are some intial values you can try:
Purchase Value = $35,000
Age in Months = 36,
Number of Miles = 50,000
Note that you can use kilometers if you'd rather.
For every 1,000 miles on the car, reduce its value by one-fifth of a percent (0.2). Do not consider remaining miles.
For every 1,000 miles on the car, reduce its value by one-fifth of a percent.
So... after each 1,000 miles, it is worth (100 - .02)% = 99.8% = 0.998 of its previous value.
So we can say....
car value = 35,000 * 0.998n , where n is the number of thousands of miles.