Motorcycle Depreciation Analysis

The video tutorial explains how to determine the most rapid depreciation period of a motorcycle's value using a graph. It starts by defining depreciation and analyzing the graph visually to identify the steepest part. The tutorial then calculates the depreciation over various two-year periods, confirming that the most rapid depreciation occurs in the first two years. The conclusion emphasizes that visual inspection can often suffice to identify the steepest depreciation period.

What does depreciation refer to in the context of the motorcycle's value?

• Increase in value

• Fluctuating value

• Loss in value

• Stable value

At what value does the motorcycle start when it is brand new?

• $5,000

• $4,000

• $6,000

• $10,000

During which two-year span does the graph show the steepest decline?

• Years 2 to 4

• Years 4 to 6

• Years 0 to 2

• Years 3 to 5

How much value is lost from the motorcycle between years 0 and 2?

• $2,200

• $5,000

• $1,000

• $400

What is the approximate value of the motorcycle at the end of year 3?

• $3,600

• $6,000

• $4,000

• $5,000

How much value is lost from the motorcycle between years 1 and 3?

• $400

• $1,000

• $2,200

• $5,000

What is the trend in depreciation as time progresses?

• Depreciation increases

• Depreciation fluctuates

• Depreciation remains constant

• Depreciation decreases

What is the approximate value of the motorcycle at the end of year 5?

• $3,600

• $4,000

• $3,800

• $3,500

How much value is lost from the motorcycle between years 4 and 6?

• $300

• $1,200

• $2,200

• $400

What is the key takeaway regarding the motorcycle's depreciation?

• Most rapid depreciation occurs in the last two years

• Depreciation is constant throughout

• Most rapid depreciation occurs in the first two years

• Depreciation is unpredictable