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?

Answer 1

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.