You buy a car for $40,000. in your research you find out the car will be worth $0 after 12 years. find the depreciation. what does this number tell you?

3333

This value of depreciation every year will get the car value to .

Step-by-step explanation:

Given: Purchase value of car(b) =

           Time(x) = 12

            Residual value(y) =

            Depreciation value= m

We will use straight line depreciation method with negative slope to find depreciation value.

Y= -mx + b

⇒ 0 =

We will subtract both side by 40000

⇒ -40000 =

Now, divide both side by -12

⇒ m = ≅ 3333

∴ Depreciation value for every year will be

This value of depreciation every year will get the car value to .