From the following information, determine the average yearly depreciation.
2 answers:
Answer:
Average yearly depreciation of the car is $291.67
Step-by-step explanation:
Cost of the used car = $3000
Trade in value of the car is given as $1250.
Duration for which the car was used = 6 years
Total depreciation in the price of the car = Cost of the car - price of the car at which car is being traded
So total depreciation = 3000 - 1250 = $1750
Average yearly depreciation = Total depreciation ÷ Years driven
Average depreciation =
Therefore average yearly depreciation $291.67 is the answer.
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