1. The value of a new car was \( \$ 18,600 \). After 5 years, the value decreased to \( \$ 5,900 \). What is the difference between the values? (A) \( \$ 12,300 \) (B) \( \$ 12,700 \) (C) \( \$ 13,300 \) (D) \( \$ 13,500 \)

To find the difference between the initial value of the car and its value after 5 years, you'll subtract the car's final value from its original value. So, \( 18,600 - 5,900 = 12,700 \). Therefore, the difference in values is \( \$ 12,700 \), which means the correct answer is (B) \( \$ 12,700 \). Cars can depreciate significantly over time, and it's interesting to note that this can vary widely between different makes and models. Some cars hold their value much better due to brand reputation or rarity, turning depreciation into a more predictable investment. If you're considering buying a new car, remember to research models' depreciation rates! Knowing which cars maintain their value can save you money in the long run, offering you the best return on investment when it's time to sell or trade-in.