Maths-
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Question

A company that makes wildlife videos purchases camera equipment for $32,400. The equipment depreciates in value at a constant rate for 12 years, after which it is considered to have no monetary value. How much is the camera equipment worth 4 years after it is purchased?

  1. $10,800 
  2. $16,200 
  3. $21,600
  4. $29,700

The correct answer is: $21,600


    HINT –  Use A.P method to solve this question
    SOLUTION -  Initial price of camera  = $ 32,400
    So, let a = 32400
    Now, since its value depreciates every year by a constant
    Let common difference,  d  = k
    After 12 years, the value of camera = $ 0
    i.e. a13 = 0
    a13  =  a + 12d
    rightwards double arrow0 =  32400 + 12k
    rightwards double arrow- 32400 = 12k
    rightwards double arrow- 2700 = k
    Now, to find its value after four years we need to find a5
    a5 = a + (n – 1)d
    = 32400 + 4( - 2700)
    = 32400 – 10800
    = 21600
    So, after 4 years camera equipment is worth $ 21,600
    Hence, option C is correct

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