10
QuizMultiple Choice

Automobile Ownership — Test

Question 10 • Financial Math

A laptop is purchased for $⁢1,200 and is expected to depreciate to $⁢200 over a period of 4 years. What is the equation for its straight-line depreciation?

Answer
A
D⁡(t)=1,000−250⁢t
B
cap d times t is equal to 1 comma 200 minus 250 t
C
D⁡(t)=1,200−300⁢t
D
cap d times t is equal to 1 comma 200 plus 250 t

Explanation

The laptop loses $1,200 − $200 = $1,000 in value over 4 years, so it depreciates by $1,000 ÷ 4 = $250 per year. Starting at $1,200, its value is D(t) = 1,200 − 250t. This matches the choice stating D(t) = 1,200 − 250t.

AI-written and checked against the verified answer.

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