a certain car was purchased for $19,400. the car has a resale value of $14,750 after a useful life of 5…

a certain car was purchased for $19,400. the car has a resale value of $14,750 after a useful life of 5 years. what is the book value of this car after 3 years? annual depreciation expense = $930 book value = $? round to the nearest hundredth

a certain car was purchased for $19,400. the car has a resale value of $14,750 after a useful life of 5 years. what is the book value of this car after 3 years? annual depreciation expense = $930 book value = $? round to the nearest hundredth

Answer

Explanation:

Step1: Identify the initial value and annual depreciation

Initial value of car $P = 19400$, annual depreciation $D=930$.

Step2: Calculate the book - value formula

The formula for book - value $BV$ after $n$ years is $BV = P - nD$. Here, $n = 3$.

Step3: Substitute the values into the formula

$BV=19400-3\times930$. $BV = 19400 - 2790$. $BV=16610$.

Answer:

$16610.00$