Question

A motorcycle bought for $10,000 depreciates continuously at 9% per annum. What is the value after seven years round the answer to the nearest dollar

Answer 1

Answer:

Book value= $62.83

Step-by-step explanation:

Giving the following information:

A motorcycle bought for $10,000 depreciates continuously at 9% per annum.

First, we need to calculate the depreciation of seven years:

FV= PV*{[1+(-i/100)]^n}

FV= 10,000*{[1+(-0.09/100)]^7}

FV= $9937.17

Book value= 10,000 - 9,937.17

Book value= $62.83