A car depreciated $2000 each year it was owned and driven. What type of depreciation is this?
A) accelerated depreciation
B) curved-line depreciation
C) straight-line depreciation
D) flat depreciation

Question

A car depreciated $2000 each year it was owned and driven. What type of depreciation is this? 
A) accelerated depreciation
B) curved-line depreciation
C) straight-line depreciation
D) flat depreciation

chaise · Answer

Straight line depreciation, the value of the car is given by the following equation, where V is the value of the car, and O is the original value of the car, and x is the number of years since buying the car.

V=O-2x

This equation follows the form of a straight line, that is:

y=mx+b