The graph shows that the value of a certain automobile over its first 5 years is a function of its age. Use the graph to estimate the depreciation (loss in value) during the fourth year.
To estimate the depreciation during the fourth year, we need to determine the value of the automobile at the beginning of the fourth year and at the end of the fourth year.
From the graph, we can see that the automobile starts with a value of $20,000 at the beginning of its first year.
At the end of the first year, the automobile's value has depreciated to around $16,000.
At the beginning of the second year, the automobile's value is approximately $16,000.
At the end of the second year, the automobile's value has depreciated to around $12,000.
At the beginning of the third year, the automobile's value is approximately $12,000.
At the end of the third year, the automobile's value has depreciated to around $8,000.
At the beginning of the fourth year, the automobile's value is approximately $8,000.
Now, we need to estimate the value of the automobile at the end of the fourth year. From the graph, we can see that the value at the end of the fifth year is around $4,000.
Since the graph shows a linear trend, we can estimate that the depreciation during the fourth year is the difference between the value at the beginning of the fourth year ($8,000) and the value at the end of the fourth year ($4,000).
Therefore, the estimated depreciation during the fourth year is $8,000 - $4,000 = $4,000.