a certain car was purchased for $21,000. the car has a resale value of $15,750 after a useful life of 6…

a certain car was purchased for $21,000. the car has a resale value of $15,750 after a useful life of 6 years. what is the book value of this car after 4 years? annual depreciation expense = $875 book value = $? round to the nearest hundredth.

a certain car was purchased for $21,000. the car has a resale value of $15,750 after a useful life of 6 years. what is the book value of this car after 4 years? annual depreciation expense = $875 book value = $? round to the nearest hundredth.

Answer

Explanation:

Step1: Identify the initial value and annual depreciation

The initial value of the car is $21000 and the annual depreciation expense is $875.

Step2: Calculate the total depreciation after 4 years

The total depreciation $D$ after $n = 4$ years is given by the formula $D=875\times n$. So, $D = 875\times4=3500$.

Step3: Calculate the book - value

The book - value $BV$ of the car is calculated by subtracting the total depreciation from the initial value. The formula is $BV=21000 - D$. Substituting $D = 3500$ into the formula, we get $BV=21000-3500 = 17500$.

Answer:

$17500.00$