Question

If a new van is valued at $34,600, what will its value be in 3 years if it depreciates 14.2% each year?

Answer 1

34600 * (1-0.142)^3 = 21854.35

Answer 2

The answer is $21,854. 35

Explanation:

rate = 14.2%

Time = 3 years

Value = 34600

V = (1-r)^t

V=34600(1-0.142)^3

V=34600 (0.858)^3

V=$21,854.35