Question

8. The Government of Belize bought a new Isuzu D-Max Pickup from Bravo Motors for $80,000. The pickup depreciates at a rate of 7.5% per annum. What will be the value of the pickup after five years?

Answers

Answered by GPT 3.5
To calculate the value of the pickup after five years, we need to calculate the depreciation for each year.

Year 1: 80,000 * 7.5% = $6,000

After the first year, the value of the pickup will be: 80,000 - 6,000 = $74,000

Year 2: 74,000 * 7.5% = $5,550

After the second year, the value of the pickup will be: 74,000 - 5,550 = $68,450

Year 3: 68,450 * 7.5% = $5,123.75

After the third year, the value of the pickup will be: 68,450 - 5,123.75 = $63,326.25

Year 4: 63,326.25 * 7.5% = $4,749.46

After the fourth year, the value of the pickup will be: 63,326.25 - 4,749.46 = $58,576.79

Year 5: 58,576.79 * 7.5% = $4,393.26

After the fifth year, the value of the pickup will be: 58,576.79 - 4,393.26 = $54,183.53

Therefore, the value of the pickup after five years will be $54,183.53.
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