Straight-Line Depreciation Is an Accounting Method Used to Help Spread

question 117

Multiple Choice

Straight-line depreciation is an accounting method used to help spread the cost of new equipment over a number of years. It takes into account both the cost when new and the salvage value, which is the value of the equipment at the time it gets replaced. The function where V is value and t is time in years, can be used to find the value of a large copy machine during the first 4 years of use. What is the value of the copier after 1 years and 3 months?

• A) $8,970
• B) $9,225
• C) $4,475
• D) $9,125
• E) $4,630

---

Definitions:

Confidence Interval

A range of values, derived from sample statistics, that is believed to contain the true value of a population parameter with a certain level of confidence.

Mean

Refers to the arithmetic average of a dataset, computed as the sum of all the numerical values divided by the count of values in the dataset.

Standard Error

The standard deviation of the sampling distribution of a statistic, often the mean, representing the accuracy with which a sample approximates a population.

Confidence Interval

A span of values, obtained from sample information, which is expected to encompass the value of an unidentified population characteristic.