What was the annual depreciation of Darren's SUV if it cost $28,500 when new and is currently worth $12,000 after five years?

To determine the annual depreciation of Darren's SUV, we need to first calculate the total depreciation over the five years. This can be done by subtracting the current value of the SUV from its original cost.

The original cost of the SUV was $28,500, and its current worth is $12,000. Thus, the total depreciation over five years is:

[

Total\ Depreciation = Original\ Cost - Current\ Value

]

[

Total\ Depreciation = 28,500 - 12,000 = 16,500

]

Next, to find the annual depreciation, we divide the total depreciation by the number of years, which is five:

[

Annual\ Depreciation = \frac{Total\ Depreciation}{Number\ of\ Years}

]

[

Annual\ Depreciation = \frac{16,500}{5} = 3,300

]

Therefore, the annual depreciation of the SUV is $3,300. This reflects the average decrease in value of the vehicle each year, providing a standardized way to assess how much value the SUV has lost annually over its lifespan thus far, which correctly corresponds to the answer choice.