If a property depreciates at 2.5% per year, what is the accumulated depreciation after five years?

To determine the accumulated depreciation after five years for a property that depreciates at a rate of 2.5% per year, it's important to apply the correct formula for calculating depreciation over multiple years.

Depreciation can be calculated using the straight-line method, where the annual depreciation is a percentage of the property's original value. If we take an initial value of the property, let's say $20,000,000 for example, the annual depreciation would be 2.5% of that amount, which equals $500,000 per year.

Over five years, this would lead to an accumulated depreciation of $500,000 multiplied by five, yielding $2,500,000. If the original property value were different (whether lower or higher), the accumulated depreciation would adjust accordingly.

Since none of the given options correctly reflect the total accumulated depreciation calculation over five years for a property depreciating at a rate of 2.5% annually, 'D. None of the above' emerges as the accurate response. This reinforces the importance of understanding how to apply the annual depreciation rate over a specified period and recognizing that the depreciation calculation depends heavily on the initial property value.