Question

The cost of a piece of machinery is $45,000. What is the value after five years with a depreciation rate of 12%?
A. $21,252.06
B. $23,747.94
C. $42,364.03
D. $44,730.65

Answer 1

\[45,000\times (.88)^5\] and a calculator

Answer 2

to decrease a number by 12% is the same as finding 88% of the number, which you do by multiplying by \(.88\)
to do it five times in a row multiply by \((.88)^5\)