A corporate jet originally cost $17, 550, 000. If its value depreciates by 5 % per year, what will its value be after 10 years? Please Explain your solution.
2007-05-21 13:12:39 · 4 answers · asked by Sid90 2 in Science & Mathematics ➔ Mathematics
If it depreciates by 5%, it becomes 0.95 of its current value at the end of one year.
I think they want you to calculate:
$17,550,000 * (0.95^10)
... which is
$17,550,000 * (0.598737)
or:
$10,507,833.28
2007-05-21 13:18:18 · answer #1 · answered by McFate 7 · 1⤊ 0⤋
The formula for depreciation is
F = P(1-r)^t
(At the same time, the formula for appreciation is F = P(1+r)^t)
F = The final value
P = The initial value
r = The rate of depreciation / appreciation
t = time
So plug in your values to the equation:
F = 17,550,000(1-.05)^10
F = 10,507,833.28 After 10 years.
2007-05-21 20:19:25 · answer #2 · answered by POTTER 2 · 1⤊ 0⤋
do this on calculator. 17550000 times 0.05 then gets x do the same thing again wit x then repeat until you do 10 times.
2007-05-21 20:17:23 · answer #3 · answered by James L 2 · 0⤊ 1⤋
17138.67
calculator
2007-05-21 20:50:08 · answer #4 · answered by Dradan 2 · 0⤊ 1⤋