7
QuizMultiple Choice

Straight-Line Depreciation — Quiz

Question 7 • Advanced Financial Algebra

A high school invests in new computer lab equipment costing $⁢22,000 , expecting it to last 8 years with a salvage value of $⁢2,000 Which equation represents its straight-line depreciation?

Answer
A
cap d times t is equal to 22 comma 000 plus 2 comma 500 t
B
D⁡(t)=22,000−2,000⁢t
C
D⁡(t)=22,000−2,500⁢t
D
D⁡(t)=20,000−2,500⁢t

Explanation

The equipment loses $22,000 − $2,000 = $20,000 in value over 8 years, so its annual straight-line depreciation is $20,000 ÷ 8 = $2,500. Starting at $22,000 and subtracting $2,500 for each year gives D(t) = 22,000 − 2,500t, the equation for choice A.

AI-written and checked against the verified answer.

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