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DIA [1.3K]
4 years ago
7

A new truck that sells for $25,000 depreciates (decreases in value) 11% each year. What will be the value of the truck in 2 year

s
Mathematics
2 answers:
larisa86 [58]4 years ago
7 0
Original price =$25,000
Depreciation rate = 11%

Note that 1 - 0.11 = 0.89.
Value after 1 year    = $25,000 (0.89) = $22,250
Value after 2 years = $22,250 (0.89) = $19,802.50

Answer: $19,802.50

brilliants [131]4 years ago
5 0

Answer:

Price of Truck after 2 year = $ 19802.50

Step-by-step explanation:

Given: Price of truck = $ 25,000

           Price depreciate at rate of 11%  in a year

To find: Price of truck after 2 years

If we let Price of truck to be P = $ 25000

And Rate of deprecation to be R = 11%

And time to be n = 2

now by using formula of deprecation, we get

A=P\times(1-\frac{R}{100})^n

A=25000\times(1-\frac{11}{100})^2

A=25000\times0.7921

A = $ 19802.50

Therefore, Price of Truck after 2 year = $ 19802.50

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