Having a blonde moment with simple math. How do you figure this out

Okay, so I don't want the answer really - just how to rearrange this formula. The answer is in the back of the textbook but I still can't figure it out & I have an exam on Friday.

A car that is 5 years old has an insured value of $12500. If the car is depreciating at a rate of $2500 per year, calculate it's purchase price.

If the original formula is: S - Vo - D t
S = Salvage price
Vo = Purchase price
D = Amount of depreciation
t = time

Please help me! I know it should be simple but I'm just like.... mind blanking.

Are you sure your math is correct? I am thinking it should be S = Vo - Dt

In which case you are trying to find Vo which is the original purchase price.

S=12500
Vo = ?
D=2500
t=5

12500 = Vo - 2500(5)
Vo = 12500 + 2500(5) = $25000
Usually a formula has an equal sign, thus making it an equation. If you don't have an equation, you can't solve for a variable.

There is something wacky about your question. Are you given this formula & told that it is wrong? Or did you come up with the formula? I'm going to ignore it.

You have an insured value & every year the car has gone down a certain amount, so the insured value + the amount it has gone down should equal the purchase price. I'm guessing salvage price & insured value must be the same.

Here is the formula, just as explained above.

Vo = S + Dt = $12500 + $2500 per year * 5 years = $12500 + $12500 = $25000

If the car has been depreciating in value at the rate of 2500 per year, and has been doing so for 5 years, the total depreciation is 5 x 2500. The original sale price then is the current value (insured value) + the total depreciation.

as a ' blond ' I should not even try to answer

if current value is 12500 and it drops at 2500 each year then original price is 5 [ 2500] + 12500

25 K

S = Vo - Dt

12500 = Vo - 2500*5

12500 = Vo - 12500

Vo = 12500 + 12500 = 25000 $ ANSWER