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?
SAT · Math · previous-year question
- A.$\$ 10,800$
- B.$\$ 16,200$
- C.$\$ 21,600$correct
- D.$\$ 29,700$
Answer
C. $\$ 21,600$
Explanation
Choice $\mathbf{C}$ is correct. The value of the camera equipment depreciates from its original purchase value at a constant rate for 12 years. So if $x$ is the amount, in dollars, by which the value of the equipment depreciates each year, the value of the camera equipment, in dollars, $t$ years after it is purchased would be $32,400-x t$. Since the value of the camera equipment after 12 years is $\$ 0$, it follows that $32,400-12 x=0$. To solve for $x$, rewrite the equation as $32,400=12 x$. Dividing both sides of the equation by 12 gives $x=2,700$. It follows that the value of the camera equ
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