If Gary buys a van £27500 and sell the van at a value of the £11264 after n years, depreciation will give us;
£27500-£11264 = £16236
If the van depreciates by 20% each year, yearly depreciation will be;
20% of £27500 = £5500
To get the total number of years n it takes the van to depreciate to £11264 will give total depreciation amount/yearly depreciation amount which gives;
£16236/£5500 = 2.9years
This means that the van has depreciate from £27500 to £11264 after 3years
