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:

$72.5

Step-by-step 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