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A product initially with a value of $18,547 has been depreciating at 9.64% p.a. over 9 years. What is it's current value?

1 Answer

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Answer

Current value = $7,448

Step-by-step explanation

The current value of any item, A decreasing at a given rate, r%, over time, t, is given as

A = A₀ (1 - r)ᵗ

For this question

A = Current value at any time t

A₀ = Initial value of the product = $18,547

r = Rate = 9.64% = 0.0964

t = Time = 9 years

A = A₀ (1 - r)ᵗ

A = 18,547 (1 - 0.0964)⁹

A = 18,547 (0.9036)⁹

A = 18,547 (0.4016)

A = $7,448

Hope this Helps!!!

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