A manufacturer bought a new rolling press for 48,000. It has depreciated in value at an annual rate of 15%. What is its value 5 yrs after purchase? Round to the nearest hundred dollars.

Question

tkhunny · Answer

What is left after 15% is gone?

anonymous · Answer

im not sure please help

tkhunny · Answer

Let's try this.

You had 100 sheep, but 15% of them ran off and were eaten by coyotes.  How many sheep remain in your care?

anonymous · Answer

no idea

anonymous · Answer

85?

tkhunny · Answer

There you go.  You DO have an idea.  Never say again that you don't.

15% of 100 is 15
100 * 15% = 100 * 0.15 = 15

After 15% goes away, we have: 100% - 15% = 85%

Start: 48000
1 Year Depreciation: 48000*0.85 = 40,800
2 Years Depreciation: 40800*0.85 = 34,680

See how that works?