Question

A truck is purchased for $17,000 and will depreciate in value 20% the first year. What will be the value of the truck one year after it is purchased?

Answer 1

It will be valued at 13,600 dollars.

20% of 17,000 dollars is 3,400 dollars, which is how much worth it is losing Subtract that from the original value to get 13,600 value

Answer 2

17,000 • 0.2= 3,400

17,000-3,400= 13,600

So, after one year of owning this truck, it’s value will depreciate to $13,600.