Question

a helicopter is bought for 5 million.its value depreciated by 7%each year .how many years wil it take for value to halve​

Answer 1

Number of year = 9.5 year

Explanation:

Given:

Initial value[Cost price] = $5,000,000

Depreciation rate[r] = 7% = 0.07

Final value[After depreciation cost] = 5,000,000 / 2 = $2,500,000

Find:

Number of year[After half value]

Computation:

A = p[1-R]ⁿ

Final value = Initial value[1-r]ⁿ

2,500,000 = 5,000,000[1-0.07]ⁿ

0.5 = [0.93]ⁿ

Number of year = 9.5 year