Lena Horn bought a Toyota Tundra for $30,000 with an estimated life of 5 years. The residual value of the truck is $5,000. Assume a straight line method of depreciation (a) what will be the book value of the truck at the end of year 4 (b) If tyhe chevy truck was bought the first year on April 12, how much depreciation would be taken the first year?

Answer 1

Five years ago, you bought a house for $151,000, with a down payment of $30, 000, which meant
you took out a loan for $121,000. Your interest rate was 5.75% fixed. You would