Question 57861
A Truck that cost $27,600 when new will have no salvage value after 12 years.  Find the annual rate of depeciation.

The rate of depreciation is:
r=(final worth-initial worth)/(final time-initial time)
It's the slope formula, if you know that one:
your final worth is:0
your initial worth is:$27,600
your final time is:12 yr
Your initial time is: 0
{{{r=(0-27600)/(12-0)}}}
{{{r=-27600/12}}}
r=-$2,300 per year.
That means it goes down in value, $2,300 per year.
Happy Calculating!!!