Ask a New Question

Question

A company replaces their cars every 6 years. A car is worth $13520 after 2 years. The company uses a depreciation rate of 35% a year.

a) How much will the car be worth when the company replaces it?
b) How much did the car cost when it was purchased?
11 years ago

Answers

Steve
if the initial value is v,

v - .35(2) = 13520

Now, knowing v, after n years the car is worth

v(1 - .35n)

Note that the car is fully depreciated after only 3 years, if the depreciation is 35% of the full value each year.
11 years ago

Related Questions

Company has 90 cars in stock with 4 cylinder engines and 290 with 6 cylinder engines. There are no o... A company sells model cars, trucks, planes, and boats. Before shipping 18,000 of each product a sam... A company owns office cars worth a total $587,000.The cars are depreciated by 12% of a year .For 10... a company owns only cars and trucks. The sum of the cars and trucks owned by the company is 60. One... a company has a9 cars 6 lorries 4 trailers and 5 van if 1 vehicle's is selected at rondom what is th... Which phrase replaces the question mark in the diagram? diagram: daoism- balance between... RNA contains , which replaces in DNA. Complete the following statement from the word bank below.... Which phrase replaces the? In the diagram Which region best replaces the question mark? (1 point) Responses India India Fertile Cre... which word best replaces the word behold? Beheld, examined, inspected, recognized
Ask a New Question
Archives Contact Us Privacy Policy Terms of Use