Question

Calculate the value of the vehicle after 4 years if the estimated depreciation is 12% for each year.

A) $88,320
B) $80,000
C) $81,920
D) $70,720

Answer 1

To calculate the value of the vehicle after 4 years with a depreciation rate of 12% per year, use the formula: Final Value = Initial Value * (1 - Depreciation Rate) ^ Number of Years. Applying this formula, the value of the vehicle after 4 years is $70,720.

Step-by-step explanation:

To calculate the value of the vehicle after 4 years with a depreciation rate of 12% per year, you can use the formula:

Final Value = Initial Value * (1 - Depreciation Rate) ^ Number of Years

Applying this formula, the value of the vehicle after 4 years can be calculated as: $100,000 * (1 - 0.12) ^ 4 = $70,720

Therefore, the correct answer is D) $70,720