Asked by Deep
A Piece of equipment cost a certain factory rs.29000. If it depriciates in value 15% in the first year, 13.5% the second, 12% the third and so on what will its value be at the end of 10 years, all percentages applying to the original cost.
Answers
Answered by
oobleck
The % of depreciation in the nth year is 15 - (m-1)*1.5
That is just an arithmetic progression with
a = 15
d = -1.5
So the sum after 10 years is
10/2 (2*15 - 9*1.5) = 82.5
That leaves a 17.5% residual value
0.175 * $29000 = $5075
That is just an arithmetic progression with
a = 15
d = -1.5
So the sum after 10 years is
10/2 (2*15 - 9*1.5) = 82.5
That leaves a 17.5% residual value
0.175 * $29000 = $5075
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