Question

Suppose you buy a phone for $200 and its value depreciates linearly. If the phone is worth $115 after four years, then what is the phones value after six year

Answer 1

Answer: 30

Explanation:

Well you said if I buy a phone for 200$ then 4 years later the price of the same phone is 115$ so the first thing that came to mind was do 200-85 with equals 115 so then I do 115-85 which is 30 so I would think the answer is 30$

Answer 2

$72.5

Explanation:

• Initial value = $200
• Depreciated value after 4 years = $115

Since depreciation rate is linear, then:

• 200 - 4x = 115
• 4x = 200 - 115
• 4x = 85
• x = 85/4
• x = 21.25

Value after 6 years:

• 200 - 6*21.25 = 200 - 127.5 = $72.5