Question

A piece of office equipment purchased for dollar-sign 67,500 depreciates in value each year. Suppose that each year the value of the equipment is StartFraction 1 Over 15 EndFraction less than its value the preceding year.

Calculate the value of the equipment after 2 years.

The value of the equipment after 2 years is dollar-sign

Answer 1

9514 1404 393

Answer:

$58,800

Explanation:

Each year, the value is multiplied by 1-1/15 = 14/15. Then after 2 years, the initial value has been multiplied by (14/15)^2 = 196/225. The value after 2 years is ...

$67,500×196/225 = $58,800