The formula to calculate the Trade-In Value (TIV) is:
\[ TIV = AV - (AV \times 0.20) \]
Where:
Trade-In Value (TIV) is the amount of money you can expect to receive when trading in an asset, such as a car or electronics. It is typically calculated by subtracting a percentage (commonly 20%) from the current market value of the asset. This reduction accounts for depreciation and other factors that may affect the asset's value.
Let's assume the following value:
Step 1: Calculate the Trade-In Value (TIV):
\[ TIV = 5000 - (5000 \times 0.20) = 5000 - 1000 = 4000 \text{ dollars} \]
Therefore, the trade-in value is $4000.
