Question

you bought a sports car for $89,000. what will the car be worth after 10 years if the depreciation rate is 8%?

Answer 1

well it goes down 8% every year so over the 10 years it will be 80% 89,000 minus 80% is 71200

Answer 2

In straight line method, the value is decreased equally at end of each year. a) So it can be represented as V=$8280(1-t/12) where t is the no. of years completed since purchase. b) Thus after 8 years, $8280(1-8/12)=$8280(1/3)= $2760