Johnson certified bought a fiber optic cable for $975,000. the estimated life of the cable is 20 years, after which its salvage value is estimated to be $5,000. using the straight-line method, what is the annual depreciation to the nearest cent?

Remember that straight line depreciation can be calculated using the formula:

where
is the annual depreciation 
is cost
is the salvage value 
is the estimated life in years.

For our problem we know that , , and . Lets replace those values in our formula to find :




We can conclude that the annual depreciation of the optic fiber cable is $45,000

Can you tell us the question

Its equal to d=7.07in