Central Clinic recently purchased a new computer system for a total cost of $64,735. The estimated life of the system is 6 years. The trade-in value of the system after 6 years is estimated to be $900. Using the straight-line method, what is the annual depreciation to the nearest cent?

Question

chosenmatt · Answer

welocme to openstudy

danjs · Answer

the slope, you are given 2 points

danjs · Answer

(time, value)

(0 , 64735)
(6 , 900)

anonymous · Answer

Annual Depreciation =Original Cost– Salvage Value Estimated Life is the formula it gives...

anonymous · Answer

I already tried but still got it wrong

danjs · Answer

$$\frac{ (900 - 64735) }{ 6 - 0 } = -10639.17 \frac{ dollars }{ year }$$

anonymous · Answer

Thank you!

danjs · Answer

u understand?

anonymous · Answer

Well the first answer I got was 10639.1666... So i rounded the .16 to 10639.27