Question

If a truck is worth 32,500 and it depreciates by 8% every year what would its value be after 2 years?

Answer 1

If you would like to know the truck's value after 2 years, you can calculate this using the following steps:

8% of 32,500 = 8% * 32,500 = 8/100 * 32,500 = 2,600
32,500 - 2,600 = 29,900

8% of 29,900 = 8% * 29,900 = 8/100 * 29,900 = 2,392
29,900 - 2,392 = 27,508

The correct result would be 27,508.

Answer 2

Hi there,

ok 32,500-8%=29900 after year 1
 
so 29900-8%=27508 after year 2

So your answer is 27508<span />