Question

Fernando purchased a new motorhome for $180,000, but the motorhome will depreciate

Answer 1

Your answer would be 122,400.

To solve, follow these steps!! First let's start with the price of the motorhome, 180,000. If it depreciates, that means it's going to lose value ever year.

It will depreciate 4% every year, so we need to find 4% of 180,000. You can just plug this into a calculator and get 7,200.

Next, it will depreciate for 8 years, so we multiply 7,200 x 8 and get 57,600. Lastly, we will subtract this from 180,000 and get 122,400.