Problema Solution
The value,V, of a machine at the end oftyears is given by V=C(1-r)^t where C is the original cost andris the rate of depreciation. Find the value of a machine at the end of four years if the original cost was $1200 and 20.0=r
Answer provided by our tutors
C = $1,200
t = 4 years
r = 0.20 or 20%
V=C(1-r)^t
V = 1200(1 - 0.20)^4
V = $491.51
the value of a machine at the end of four years will be $491.51.