To determine the price of the truck after five years of depreciation, we need to use the formula:
Price after depreciation = Original price * (1 - Depreciation rate)^Number of years
Substituting the given values, we get:
Price after depreciation = $43,750 * (1 - 0.13)^5
Price after depreciation = $24,136.56
Therefore, the price of the truck after five years of depreciation would be approximately $24,136.56.
If I bought a truck for $43,750 and it depreciates at a rate of 13% each year. What would the price of the truck be worth in five years?
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1 answer