$11,000 will bet the cost in 7 years
Given:
Original cost: $25,000
Depreciation rate: 8%
Term: 7 years
Formula for Depreciation:
A = C ( 1 - ( r ) (t) )
A = Future Value
C = Original Cost
r = rate
t = term
Solution:
Substitute the given values to the formula for depreciation.
A = $25,000( 1 - ( 0.08)(7))
A = $25,000( 1 - .56 )
A = $25,000(0.44 )
A = $11,000
