Question

Timothy paid $14,850 for a used car 4 years ago. Because he did not properly maintain the car, he sold it for $3,960. What was his average annual depreciation?$2,590.75$2,810.90$2,722.50$2,486.50None of these choices are correct.

Answer 1

First let's calculate the total depreciation:

$14850-3960=10890$

Now, to calculate the annual depreciation, we just need to divide the total depreciation by the number of years:

$\frac{10890}{4}=2722.5$

So the correct option is the third one: $2722.50.