Question

An automobile purchased for use by the manager of a firm at a price of $24,000 is to be depreciated using the straight-line method over 5 years. What will be the book value of the automobile at the end of 3 years? (Assume the scrap value is $0.)

Answer 1

i got p=-.5x+100

Answer 2

how did you find this?

Answer 3

i got 9600

Answer 4

answer is 9600

Answer 5

i'm going to post a new problem could you take a look at it?

Answer 6

Yeah, correct:)
could you show me your working?

Answer 7

no i got it from someone else

Answer 8

@zackwashere just don't aim to find answers, try to understand the concept behind it. I'll explain this problem

Answer 9

We need to find the annual depreciation value of the automobile:
Let it be d
\[d=\frac{\text{cost}-\text{scrap value}}{\text{no. of years}}\]
\(d=\frac{24000-0}{5}\) \(= 4800\)
so each year its price will depreciate by 4800
after 3 years, it'll get reduce by 3*4800=14400
so the book value will be =>24000-14400=9600
do you understand this?