Question

The pharmacy automated medication dispensing unit depreciated (decreased in value) by 25% during the first year. If the dispensing unit was purchased for $28,000 what is the dispensing unit worth today?

Answer 1

The dispensing unit worth today: $21,000

Explanation:

If we assume that a year has elapsed since the dispensing unit was purchased, then we know that it has lost 25% of its initial value.

If its initial value was 28,000 then we calculate 25% of 28,000

`0.25 * 28,000 = 7000`

Now we subtract 7000 from the initial amount to get the current value.

The current value is:

`\$28,000-\$7000 = \$21,000`