Question

"sam's furniture was destroyed by a fire. the furniture cost $1200 when it was purchased, but similar new furniture now costs $1800. assuming the furniture was 50 percent depreciated, what is the actual cash value of sam's loss?"

Answer 1

Deprecated means the price is decreased, so if something is deprecated by 50% (which just means 1/2 is taken away) its original price is just cut in half. so half of 1200 (1200 divided by 2) is 600. i think the answer is 600 :-)