Home › GRE General Test › Mathematics › Sequences, Probability and Counting Theory › A courier firm buys a van for $30,000 and expect…
A courier firm buys a van for $30,000 and expects to sell it for $12,000 after six years of straight-line depreciation. By how much does the recorded value change each year?
AIt falls by $2,000 each year
BIt falls by $3,000 each year
CIt falls by $5,000 each year
DIt falls by $3,600 each year
Answer & Solution
Correct answer: B. It falls by $3,000 each year
1. Under straight-line depreciation the value drops by the same amount every year, forming an arithmetic sequence.
2. The total loss in value is $30,000 - $12,000 = $18,000 over six years.
3. Divide the loss by the number of years: $18,000 / 6 = $3,000 per year, so the common difference is -$3,000.
4. Option C divides by the wrong count and option D borrows a rate from nowhere, so both fail the division check.
_Source: OpenStax Algebra and Trigonometry (CC BY 4.0), Ch 13 "Sequences, Probability and Counting Theory", section 13.2 ARITHMETIC SEQUENCES_
Related questions
A six-sided number cube is rolled once. What is the probability of rolling a number greateTwo six-sided number cubes are rolled and the faces are summed. What is the probability thAn electronics store has 10 phones in stock and 4 of them are defective. A customer buys 2How many distinct rearrangements can be made from the letters of the word CARRIER?A sundae bar offers 6 toppings, and any number of them may be chosen, including none. How Twelve sprinters enter a race. In how many different ways can the gold, silver, and bronzeFor a business trip, Priya packs 3 skirts and 5 blouses, and each day decides whether or nAt the beginning of each month, $200 is deposited into a retirement fund that earns 6% ann