Question

A tractor costs 15450 and depreciates in value by 14% per year. How much will the tractor be worth after 3 years?

Answer 1

The answer is $8,961.00

To get this answer must first set up an equation:

C(cost) = $15,450 - $15,450*.14t (where t equals time in years)

Now we plug in our variables...

C(cost) = $15,450 - $15,450*.14(3)

C(cost) = $15,450 - $15,450*.42

C(cost) = $15,450 - 6489

C(cost) = $8961

I hope this helped!!

Answer 2

=15450(1-14/100)^3
=15450(43/50)^3
=9827.07
After 3 years it will cost 15450-9827.07=5622.93