Question

Pat bought a boat for $37,000 in 2001. In 2006 the boat was worth $27,000. If the boat depreciation is linear, how much will the boat be worth in 2009?

Answer 1

$37,000 - $27,000 = $10,000 over 5 years

It depreciates $2000 a year


2007= $27,000 - $2000
2007 = $25,000

2008=$25,000 - $2000
2008= $23,000

2009= $23,000 - $2,000
2009= $21,000

The boat will be worth $21,000 in 2009