Question

Brent purchased a used vehicle that depreciates under a straight-line method. The initial value of the car is $7500, and the salvage value is $500. If the car is expected to have a useful life of another 7 years, how much will it depreciate each year?
A) $7000
B) $5000
C) $1300
D) $1000

Answer 1

depreciation eats up the value of the car.

if its going to have a value of 500 in the end, then depreciation eat up how much of the value over the 7 years?

Answer 2

when we know the amount that gets eaten up; we simply even that out over the 7 years.

(value - salvage)/(useful life)

Answer 3

@amistre64 is it $1000?

Answer 4

yes it is :)

Answer 5

@amistre thankyou (: