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Lawrence purchased a used vehicle that depreciates under a straight-line method. The initial value of the car is $4500, and the salvage value is $500. If the car is expected to have a useful life of another 5 years, how much will it depreciate each year?

A. $1000
B. $5000
C. $500
D. $800

Respuesta :

Aliwohaish12
(4,500−500)÷5=800
............

Answer:

Option D. $800

Step-by-step explanation:

Lawrence purchased a used vehicle that depreciates under a straight-line method.

The initial value of the car = $4,500

Salvage value  = $500

Depreciating value in 5 year = 4500 - 500 = $4,000

depreciating value in one year = 4,000 ÷ 5 = $800

It would depreciate $800 each year.

Answer : Option D.  $800