10
QuizMultiple Choice

Straight-Line Depreciation — Quiz

Question 10 • Advanced Financial Algebra

A high school's photography club purchases a new camera for $⁢800 The camera has an expected useful life of 5 years and a salvage value of $⁢100 Which equation represents the straight-line depreciation of the camera?

Answer
A
cap d times t is equal to negative 140 t plus 800
B
cap d times t is equal to negative 120 t plus 800
C
cap d times t is equal to negative 140 t plus 700
D
cap d times t is equal to 140 t plus 800

Explanation

Straight-line depreciation reduces the camera’s value by the same amount each year. The total depreciation is $800 − $100 = $700 over 5 years, so the yearly decrease is $700 ÷ 5 = $140. Starting at $800, the value after t years is D(t) = −140t + 800, which is choice D.

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