Problema Solution

A farmer buys a tractor for $50,000. If the tractor depreciates 10% per year, find the value of the tractor in 7 years

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A farmer buys a tractor for $50,000. If the tractor depreciates 10% per year, find the value of the tractor in 7 years

Solution:

V=50,000*(1-10%)^7 = 23,914.85

So the value of the tractor in 7 years is $23,914.85