Forrest Lumber purchased a table saw for $810. After 2 years the saw had a depreciated value of $630. What is the amount of yearly depreciation?

$90
$75
$180
$105

Question

Forrest Lumber purchased a table saw for $810. After 2 years the saw had a depreciated value of $630. What is the amount of yearly depreciation?

$90
$75
$180
$105

zepdrix · Answer

810 was the initial worth of the saw.
After 2 years it is now worth 630.

Hmm so in 2 years it lost this much value: 810 - 630 = ?

Then they're basically asking you, how much did value did it lose in ONE year, not two years.
So how can we solve it from there? :)

anonymous · Answer

$180?

zepdrix · Answer

So you subtracted the new value from the original value and that told you that the saw lost $180 value in 2 years.
So how much did it lose in 1 year?
That would be half of that amount, yes? :)