Question

Eroa Industries bought a laser printer for $3400. It is expected to depreciate at a rate of 12% per year. What will the value of the printer be in three years? Round to the nearest dollar.

Answer 1

The laser printer will have depreciated to $1487.5

Explanation:

The cost price is $3400 and at a depreciation rate of 12% annually

then if it is used for 3 years, it would have depreciated

(3400 × 12 × 3)/100

= 34 × 12× 3

= $1912.5

Therefore the new price value will be

$3400 - $1912.5 = $1487.5