In the following exercise, assume straight-line depreciation. A word processor costs $570.00 when new and is expected to be worth $195.00 after 5 years.What will It be worth after 2 years?
A) $ \$ 570.00$
B) $\$ 382.50$
C) $\$ 420.00$
D) $\$195.00$
E) $\$375.00$

Question

In the following exercise, assume straight-line depreciation. A word processor costs $570.00 when new and is expected to be worth $195.00 after 5 years.What will It be worth after 2 years? 
A) $ \$ 570.00$
B) $\$ 382.50$
C) $\$ 420.00$
D) $\$195.00$
E) $\$375.00$

Quizplus · Accepted Answer

The depreciation per year is $(570 - 195) / 5 = 75$. After 2 years, the value is $570 - 2*75 = 420$.

In the Following Exercise, Assume Straight-Line Depreciation $570.00 \$ 570.00$570.00 B) $382.50\$ 382.50$382.50

In the Following Exercise, Assume Straight-Line Depreciation $\$ 570.00$ B) $\$ 382.50$