Question

From the following information, determine the average yearly depreciation.

Answer 1

Average Yearly Depreciation = 291.67

Answer 2

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 = $\frac{1750}{6}=291.67$

Therefore average yearly depreciation $291.67 is the answer.