Question

Carla bought a cat for $12,000 and the value depreciates 8% each year

Answer 1

Present Value A=Rs.52,488

Depreciation rate r=10% per annum

Time t=4 years

Let initial value be P

We know the formula, A=P(1−100r)t

Substituting the given values, we get.

52,488=P[1−10010]4

52,488=P(0.9)4

P=0.656152488

P=Rs.80,000