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Dorthy purchased a used that depreciate under a straight line method. the initial value of the car 8400 and the salvage value is 400 if the car is expected to have a useful life for another 5 years how much would it depreciate each year?( please answer quickly)

A. 2000.00

B. 1600.00

C. 80.00

D. 400.00

User Mehmetozer
by
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1 Answer

5 votes

Answer:

B. 1600.00

It would depreciate 1600 per year

Explanation:

Since,

Dorthy purchased a used that depreciate under a straight line method

so, we can use linear equation formula

We are given

initial value of car is 8400

so,
b=8400

we can use slope-intercept form of line


y=mx+b

now, we can plug value


y=mx+8400

the salvage value is 400 if the car is expected to have a useful life for another 5 years

so, at x=5 , y=400

we can plug it and solve for m


400=5m+8400


400-8400=5m+8400-8400


5m=-8000


m=-1600

So,

It would depreciate 1600 per year