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6 votes
A computer valued at $6500 depreciates at a rate of 14

.3% per year. Determine the value of the computer
after 5 years.

1 Answer

2 votes

Answer:

A depreciation of 14.3% leaves you with 85.7%, right? Each year's value is 85.7% of the tear before.

So, 6500(0.857)3 = $4091.25