Question

a copy machine depricicates at the rate of 15% each year. If the original cost fo the copy machine was $20,000 , what is the approximate value of the machine after 3 years

Answer 1

The approximate value of machine after 3 years = $12283

Explanation:

Original cost of the copy machine = $20,000

Rate of depreciation each year = 15%

To, find cost of machine after 3 years.

Solution:

The depreciation equation can be given by:

`V=V_o(1-r)^t`

where:

`V\rightarrow` Final value

`V_o\rightarrow` Original value

`r\rightarrow` rate od depreciation in decimal form

`t\rightarrow` time

Given values:

`V_o=\$20,000\\r=15\%=0.15\\t=3\ years`

Using the values to find the value of machine after 3 years.

`V=20000(1-0.15)^3`

`V=20000(0.85)^3`

`V=20000(0.614)`

`V=12282.5\approx12283`

Thus, approximate value of machine after 3 years = $12283