Question

Bill buys a new machine.

Answer 1

Answer:

For a, the machine depreciates 20% of its current value each year.  So, It will lose 20% of its value in the first year.  Then in the second year, it will lose 20% of THAT value (not of the original value) and so on.

b) Since the machine loses 20% of its value each year, it retains 80% of its value each