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

Question

asked Feb 16, 2020 33.2k views

1 Answer

Pixeladed · Answer 1 · 2020-02-22T02:33:39+0000

Answer:

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:

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