Answer:
Option D. $29,647
Step-by-step explanation:
The following were obtained from the question:
Present value = $75,000
Rate of depreciation (R) = 6%
Time (t) = 15 years
Amount after 15 years =?
Since the worth of the tractor is depreciating, we shall apply the following formula to obtain the worth after 15 years:
Amount = present value x (1 – R)^t
Amount = $75000 x (1 – 6%)^15
Amount = $75000 x (1 – 0.06)^15
Amount = $75000 x (0.94)^15
Amount = $29647
Therefore, the value of the tractor after 15 years is $29647
