Question

A new truck costs $15 000 and loses 23% of its value each year.

Calculate the value of the truck after three years.

Answer 1

$6, 809.495

Explanation:

First year

15,000 x 23% = 3,450

15,000 - 3,450 = 11,500

Second year

11, 500 x 23% = 2,656.5

11, 500 - 2,656.5 = 8,843.5

Third year

8,843.5 x 23% = 2,034.005

8,843.5 - 2,034.005 = 6, 809.495