212k views
2 votes
After depreciating at a rate of 12% per year for 4 years, what is the worth of the conference table purchased by the company for $960?

a. $575.49
b. $672.22
c. $499.05
d. $559.87

User Csgeek
by
7.7k points

1 Answer

1 vote

Final answer:

To calculate the worth of a conference table after depreciating at a rate of 12% per year for 4 years, we can use the formula Final Value = Initial Value x (1 - Depreciation Rate)^Number of Years. By substituting the given values into this formula, we find that the worth of the conference table is $672.22.

Step-by-step explanation:

To calculate the worth of the conference table after depreciating at a rate of 12% per year for 4 years, we need to find the final value. We can use the formula:

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

Applying the values given, Initial Value = $960, Depreciation Rate = 12% = 0.12, and Number of Years = 4, we can plug them into the formula:

Final Value = $960 x (1 - 0.12)^4

Simplifying, Final Value = $960 x (0.88)^4 = $672.22.

Therefore, the worth of the conference table after 4 years of depreciation is $672.22.

User Ondrej Machulda
by
7.6k points