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12 September, 10:44

A truck is purchased for $14,000 and will depreciate in value 20% the first year. what will be the value of the truck one year after it is purchased?

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  1. 12 September, 11:21
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    The truck's values will decrease by 20%. Thus,

    New value = 14000 - 0.2 x 14000

    New value = 14000 (1 - 0.2)

    New value = 14000 (0.8)

    New value = $11,200
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