Marlin Davies buys a truck for $28,000. In three years, the truck depreciates 48% in value. How much is the truck worth in three years?

Question

Question 11 options:

A)

$14,560

B)

$27,052

C)

$12,005

D)

$14,000

Answer 1

To find the value of the truck after three years, we first need to calculate how much value it has lost due to depreciation.

1. Determine the depreciation amount: The truck depreciates 48% of its original value.

   \[ \text{Depreciation Amount} = \text{Original Price} \times \text{Depreciation Rate} \] \[ \text{Depreciation Amount} = 28000 \times 0.48 = 13440 \]

2. Calculate the value after depreciation: To find the truck's worth after three years, subtract the depreciation amount from the original price.

   \[ \text{Value After Depreciation} = \text{Original Price} - \text{Depreciation Amount} \] \[ \text{Value After Depreciation} = 28000 - 13440 = 14560 \]

So, the truck is worth $14,560 in three years.

The correct answer is:

A) $14,560