Gordon bought a car for $13,250 and three years later sold it for $9,750.?

Question

What was the annual depreciation?
a. $3,500
b. 1,166.67
c. 88%
d. none of these

Answer 1

Since this is realestate you must be desparate. At first glance it would appear to be $1,166.67 per year for the three years. In reality cars don't have a straight line depreciation. The largest depreciation is in the first year, with a lesser amount for each of the following years. So in real life the answer is D

Answer 2

Your homework problem, right?

Answer 3

B.