A company has purchased 5 company trucks for $23,000 each. If the depreciation rate is 5.75%, what is the amount that depreciated per vehicle after 4 years?
A. $4,850.98
B. $18,149.02
C. $24,254.88
D. $90,745.12

Question

A company has purchased 5 company trucks for $23,000 each. If the depreciation rate is 5.75%, what is the amount that depreciated per vehicle after 4 years?
 A. $4,850.98 
 B. $18,149.02 
 C. $24,254.88 
 D. $90,745.12

anonymous · Answer

i think its C. $24,254.88

texaschic101 · Answer

1st year -- 23,000 x .0575 = 1322.50
                 23,000 - 1322.5 = 21,677.50
2nd year -- 21,677.50 x .0575 = 1246.45
                  21,677.50 - 1246.45 = 20,431.05
3rd year -- 20,431.05 x .0575 = 1174.79
                  20,431.05 - 1174.79 = 19,256.26
4th year -- 19,256.26 x .0575 = 1107.23
                  19,256.26 - 1107.23 = 18,149.03

I am off by one penny....must have made a mistake in rounding and I am too lazy to find it....regardless, the answer is B.