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Svetradugi [14.3K]
3 years ago
6

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

o the nearest dollar
Mathematics
1 answer:
Scilla [17]3 years ago
5 0

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.

<u>First, we need to calculate the depreciation of seven years:</u>

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

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