Question

A new truck was purchased for $58,000. Each year after the truck was purchased, its value decreased by approximately seven-eighths. What is the value of the truck 12 years after

purchase?

Answer 1

Therefore, the value of the truck 12 years after it was purchased is approximately $1,624.

Explanation:

To find the value of the truck after 12 years, we need to apply the seven-eighths decrease to the original value each year. Let's set up an equation:

Value after 12 years = $58,000 x (7/8)^12

Simplifying, we get:

Value after 12 years = $58,000 x 0.028

Value after 12 years = $1,624

Therefore, the value of the truck 12 years after it was purchased is approximately $1,624.