Question

The value of a machine depreciates each year by 5% of its value at the beginning of that year.If its value when new on 1st January,1980 was £10,250.00,what was its value in January 1989 when it was 9 years old?Give your answer, correct to three significant figures.​

Answer 1

Answer:

6460 pounds approx.

Step-by-step explanation:

Depreciation = P( 1 - r/100)^n [ n = time period, P= Principal and r= rate}

= 10,250(1-5/100)^9

= Approx. 6460 pounds