Find the value of a machine at the end of 3 Years

Question

The value of a machine, V, at the end of t years is given by V=C(1-r)^t,where C is the original cost and r is the rate of depreciation. Find the value of a machine at the end of 3 years if the original cost was $1068 and r=0.15. Round to two decimal places

Answer 1

V = C(1-r)^t

 

V = 1068 (1-.15)³

 

V = 1068 (.85)³

 

V = 1068 (.614125)

 

V = $655.89