2. A grocer paid $2600 for secondhand delivery truck. At end of 4 1/2 years he was allowed $440 for it toward the purchase of a new truck. What was the average yearly amount of depreciation?
A.$220
B.$450
C.$480
D.$550
E.$2200
2160 / 4.5 = ?
so, (2600-440)/4.5=480
answer c, thank you
I'm just helping my younger brother.
Right.
The answer is c
To find the average yearly amount of depreciation, we need to calculate the total depreciation over the given time period and then divide it by the number of years.
First, let's determine the total depreciation. The grocer initially paid $2600 for the secondhand delivery truck and received $440 when he sold it, which means the total depreciation is $2600 - $440 = $2160.
Next, we need to find the number of years. The question states that the grocer had the truck for 4 1/2 years. To calculate this, we add 4 years to 1/2 year, which gives us 4 + 1/2 = 4.5 years.
Now we can calculate the average yearly amount of depreciation by dividing the total depreciation by the number of years: $2160 / 4.5 = $480.
Therefore, the average yearly amount of depreciation is $480, so the correct answer is C. $480.