Solve this depreciating percent problem
anassetworth20000depreciates8%for5years
Book Value Formula
B(t) = A(1 - d)t
Calculate depreciation rate:
| Depreciation rate (d) = | Depreciation % |
| 100 |
| Depreciation rate (d) = | 8 |
| 100 |
Depreciation rate (d) = 0.08
Plug in our values
B(5) = 20000(1 - 0.08)5
B(5) = 20000(0.92)5
B(5) = 20000(0.6590815232)
Final Answer
B(5) = 13,181.63
