Question

If a new truck costs $43,750 and it depreciates 18% per year, what will the truck be worth in 5 years?

Answer 1

if it depreciates by 18%, then as each year passes, its worth is reduced to 82% of its value
So, after 5 years, it is worth 43750 * 0.82^5

Answer 2

V = Vo(1-r)^t,
V = 43,750(1-0.18)^5 =