Select the correct answer. cameron purchased an electric guitar for $1,875. the value of the guitar depreciates by 20% each year

Question

2 years ago

6

. in how many years will the guitar be valued at $768?

1 answer:

mina [271] · Answer 1 · 2023-06-20T12:59:23+03:00

The number of years it will take for the guitar to be valued at $768 given the initial value and the rate of depreciation is four years.

In how many years will the guitar be valued at $768?

When an asset depreciates,it means that with the passage of time, the value of he asset declines.

Number of years = (In FV / PV)/r

FV= future value = 768

PV = present value = 1875

r = rate of depreciation =20

(In 768 / 1875) / 0.2 = 4 years

What is the rate of depreciation?

Depretiation is the systematic allocation of the depreciable amount of an asset over its useful life.

The depreciable amount of an asset is the cost of an asset or other amount substituted for cost, less its residual value.

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