SOLUTION: Determine the depreciation rate for a truck that was purchased for $125000 and the value after three years is $85000.
Algebra.Com
Question 1174219: Determine the depreciation rate for a truck that was purchased for $125000 and the value after three years is $85000.
Answer by greenestamps(13203) (Show Source): You can put this solution on YOUR website!
The value after 3 years is the initial value, multiplied by the depreciation factor 3 times.
To several decimal places, that is 0.879366.
To check that, confirm that
Note that that number is the depreciation factor; the depreciation rate that the problem asks for is 1-0.879366 = 0.120634, or about 12%.
RELATED QUESTIONS
What is the Double cleaning balance depreciation (DDB) of four years depreciation... (answered by Alan3354)
A business owner decides to buy a company car for $53400 and assumes it will have a... (answered by Boreal)
Anne purchased a new truck for $16,500. She sold it 6 years later for $3,700. Find the... (answered by jim_thompson5910)
A house purchased for $125,000 is expected to appreciate according to the formula y =... (answered by mananth)
A new truck costs $32,000. The truck’s value will depreciate over time, which means it... (answered by addingup)
The yearly depreciation rate for a car is modeled by r=1-(V/C)^1/8 , where V is the value (answered by stanbon)
A farmer buys a new tractor for $152,000.00 and assumes that it will have a trade in... (answered by checkley77)
Express the annual rate of depreciation r as a function of t if a new car was purchased... (answered by Theo)
The value ($V) of a car after n years is given by {{{V=V1 (1-R)^N}}} where {{{V1}}} is... (answered by Fombitz)