If a $1002 item depreciates in value by $167 per year, how many years will it take the item to depreciate to a value of zero dollars?
A) 3 years
B) 4 years
C) 5 years
D) 6 years

Question

Quizplus · Accepted Answer

To depreciate to a value of zero dollars, the item needs to lose its entire value of $1002.

$1002 ÷ $167 per year = 6 years

Therefore, the item will take 6 years to depreciate to a value of zero dollars. The correct answer is D.

If a $1002 Item Depreciates in Value by $167 Per