Question

You buy a used truck for $10,000. It depreciates at the rate of 18%
each year for 5 years. Find the value of the truck after 5 years.

Answer 1

Start with year 1.
At the beginning it is worth 10,000, at the end it's work 82% of that.

Answer 2

?

Answer 3

That's what depreciation means..

Answer 4

ok what now ?
im sorry ima slow learner

Answer 5

when it says the truck depreciates at 18% each year
it means that at the end of the year it is worth 18% less than at the start

Answer 6

so what is that number?

Answer 7

what is 0.88 times 10000

Answer 8

$3707?

Answer 9

thats what i got but i dont think its right

Answer 10

You are looking at your possible answers and trying to guess?

Answer 11

OK, the formula is
P (0.88)^5
It's not 3707.
gotta go

Answer 12

ok