The yearly depreciation of a certain machine is 15% of its value at the beginning of the year. If the original cost of the machine is MK400,000.00, determine the value after 7 years.

Answer 1

The yearly depreciation of the machine is 15% of its value at the beginning of the year, or 0.15 * MK400,000.00 = MK60,000.00.
After the first year, the value of the machine will be MK400,000.00 - MK60,000.00 = MK340,000.00.
After the second year, the value will be MK340,000.00 - MK60,000.00 = MK280,000.00.
After the third year, the value will be MK280,000.00 - MK60,000.00 = MK220,000.00.
After the fourth year, the value will be MK220,000.00 - MK60,000.00 = MK160,000.00.
After the fifth year, the value will be MK160,000.00 - MK60,000.00 = MK100,000.00.
After the sixth year, the value will be MK100,000.00 - MK60,000.00 = MK40,000.00.
After the seventh year, the value will be MK40,000.00 - MK60,000.00 = -MK20,000.00.
Since the value cannot be negative, the value after 7 years is 0. Answer: \boxed{MK0.00}.