A person purchased a second hand motorcycle for $16,000 . if it's rate depreciats at 5% per year. what will be it's value after 2 years
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A person purchased a second hand motorcycle for $16,000 . if it's rate depreciats at 5% per year. what will be it's value after 2 years
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Answer:
If the motorcycle's rate of depreciation is 5% per year, we can calculate its value after 2 years.
To do that, we first need to find the depreciation for each year. Since the rate of depreciation is 5%, the motorcycle would lose 5% of its value each year.
So, after the first year, the motorcycle's value would be 95% of $16,000, which is $15,200.
After the second year, the motorcycle would further depreciate by 5%. Therefore, the value would be 95% of $15,200, which is $14,440.
So, after 2 years, the value of the motorcycle would be $14,440.
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Answer:
Step-by-step explanation:
use the formula to calculate depreciated value in compound interest which is equal to p(1-r divided by 100)then years. Substitute then solve