Answer: If a delivery van costs $32,500 and depreciates by 12% each year, its value will decrease by $3,900 (12% of $32,500) in the first year. This means that after the first year, the van would be worth $32,500 - $3,900 = $28,600. If the value of the van continues to depreciate by 12% each year, its value will continue to decrease by this same amount each year. For example, in the second year, the value of the van would decrease by an additional $3,432 (12% of $28,600), and its value would be $28,600 - $3,432 = $25,168. The value of the van will continue to decrease in this way until it reaches a point where it is no longer economically viable to use or repair.