SOLUTION: You buy a used truck for $10,000. It depreciates at the rate of 18% each year for 5 years. Find the value of the truck after 5 years.

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Question 389262: You buy a used truck for $10,000. It depreciates at the rate of 18%
each year for 5 years. Find the value of the truck after 5 years.
Answer by techno(3) About Me  (Show Source):
You can put this solution on YOUR website!
We have, the price of the truck at the beginning of the first year, P= $10,000
After the first year, it depreciated by 18%.
So after 1 year, the price P1 = P*(1- (18/100)
After 2 years, the price P2 = P*(1- 2*(18/100)
Similarly at the end of 5th year, price P5 = P*(1- 5*(18/100) = $10,000*(1-0.9)
= $10,000*0.1 = $1000