Question

A car was purchased for $21000.00 and is expected to be worth $9750.00 in 5 years. Determine the rate at which the van depreciates in value.​

Answer 1

Answer:

$2250/year

Step-by-step explanation:

Value when purchased: $21,000.00

Value in 5 years: $9,750.00

Difference in value: $21,000 - $9750 = $11,250

Amount of time: 5 years

Depreciation per time: $11,250 / 5 years = $2,250/year

Answer: $2250/year