Question

(c) (i) A new truck costs $15 000 and loses 23% of its value each year. Calculate the value of the truck after three years. ( c ) ( i ) A new truck costs $ 15 000 and loses 23 % of its value each year . Calculate the value of the truck after three years .​

Answer 1

$6847.955

Step-by-step explanation:

Use the compound interest formula, but the value decreases over time.

`\sf A = P(1 - (r)/(100) )^t`

where 'A' is final amount, r is rate, t is time

Inserting P = $15,000, r = 23, t = 3 years

`\sf A = 15000(1- (23)/(100) )^3`

`\sf A = 6847.995`

Hence the value of truck after three years will be $6847.955.