An automobile purchased for 25000 is worth 1900 after 7 years Assuming the cars value depreciated at the same rate from year to year what was the worth at the end of the third year?

Answer 1

$15,100

• 25,000 - 1,900 = 23,100 [total depreciation after 7 years]
• 23,100 / 7 years = 3,300 per year [amount of depreciation each year]
• 3,300 per year * 3 years = 9,900 [amount of depreciation after three years]
• 25,000 - 9,900 = 15,100 [value after three years of depreciation]