Question

A car purchased for $10,000 depreciates under a straight-line method in the amount of $750 each year. Which equation below best models this depreciation? A. y = 10000x + 750 B. y = 10000 + 750x C. y = 10000x - 750 D. y = 10000 - 750x

Answer 1

D. y = 10000 - 750x

Explanation:

The answer is D. y = 10000 - 750x, where:

y = the current value of the car,

10000 is the initial value of the car

750 is the depreciation it has every year

x is the number of years.

The 10000 has to be fixed and not multiplied by anything (unlike answer A or C) because that's the initial value of the car. Then it has to be reduced (meaning we take value of out it, so a subtraction), so that excludes A and B. The devaluation occurs every year, so it has to be multiplied by the number of years (excluding answers A and C again). So, only answer D remains.