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21 March, 18:55

Karen purchased a used vehicle that depreciates under a straight line method the initial value if the car is 4400 and the salvage value is 800 if the car is expected to have a useful life of another six years how much will it depreciate each year

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  1. 21 March, 20:39
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    600 is the APEX answer
  2. 21 March, 21:40
    0
    It is expected to depreciate from 4400 to 800 in 6 years. The depreciation per year is the ratio

    depreciation per year = (total depreciation) / (number of years)

    The total depreciation is the change in value, so the depreciation per year is

    (4400 - 800) / 6 = 600

    Karen expects the vehicle to depreciate by 600 each year.
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