What must you do to express the value of the watch on January 1, 1995, in terms of its previous values?

To express the value of the watch on January 1, 1995, in terms of its previous values, introducing a variable is essential. By assigning a variable, you can create a representation of the unknown value, which allows for calculations based on the established values from prior dates. This approach enables you to formulate equations that reflect the relationships between the different values over time, facilitating a clearer analysis of how those previous values influence the current valuation.

Using a variable provides a flexible way to manipulate and analyze the data, making it possible to derive mathematical expressions or estimates based on historical information. This process is crucial in situations where you are trying to establish trends or forecast future values based on earlier data, as it allows you to create a systematic approach to understanding changes and fluctuations in value.