Question

Calculate the book value of a new costing $48,000 after 6 years if it depreciates each year by 10%

Answer 1

For this case we know that the starting price is 48000$

time = 6 years

And depreciation each year is 10%

Then the final value after 6 years is:

A = 48000 (1- 0.10*6)= 19200$