Depreciation and Driving Data

Front

What tracks the distance a car has traveled since it left the factory?

Back

Odometer

Front

A car purchased for $25,000 depreciates by $2,500 each year. What is the value of the car after 4 years?

Back

$15,000

Front

A van is bought for $4,200 and lasts 7 years. How much will it lose per year?

Back

$600

Front

Glenna is planning a 2,700-mile trip with a car that averages 30 miles per gallon. How many gallons will her car use?

Back

90 gallons

Front

What are the two intercepts used for the depreciation equation of a car worth $27,500 that fully depreciates in 10 years?

Back

(0, 27,500) and (10, 0)

Front

Define depreciation in the context of vehicles.

Back

Depreciation is the reduction in the value of a vehicle over time due to wear and tear, age, and market conditions.

Front

What is an odometer?

Back

An odometer is a device in a vehicle that measures the distance traveled.

Front

How do you calculate annual depreciation?

Back

Annual Depreciation = (Initial Value - Salvage Value) / Useful Life

Front

What is the salvage value of a vehicle?

Back

The salvage value is the estimated residual value of a vehicle at the end of its useful life.

Front

If a car is worth $20,000 and depreciates by $2,000 each year, what will its value be after 5 years?

Back

$10,000