Question

The value of a $60,000 tractor decreases approximately 20% each year. Find the approximate value of the tractor in 5 years.

Answer 1

The tractor will be worth 19660.8$ over the 5 years

Answer 2

Year 1: 60000*80% (to find value after 20% decrease. 100-20=80%)
60000*0.8 = $48000

Yr 2: 48000*0.8 = $38400
Yr3: 38400*0.8 = $30720
Yr 4: 30720*0.8 = $24576
Yr 5: 24576*0.8 = $19660.80 (value of tractor after 5 yrs of deprecation)