The graph shows that the value of a certain automobile over its first 5 years is a function of its age. Use the graph to estimate the depreciation (loss in value) during the fifth year.
To estimate the depreciation during the fifth year, we need to look at the change in value between the end of the fourth year and the end of the fifth year.
Looking at the graph, we can see that the value of the car at the end of the fourth year is approximately $8,000. The value of the car at the end of the fifth year is approximately $5,000.
Therefore, the depreciation during the fifth year can be estimated as:
Depreciation = Value at the end of fourth year - Value at the end of fifth year
Depreciation = $8,000 - $5,000
Depreciation = $3,000
Thus, the estimated depreciation during the fifth year is $3,000.