Question

A new scooter costs $2,500. The depreciation rate is 30% per year. What is the value of this scooter after 5 years? Round to the nearest dollar.

Answer 1

Answer:

value of scooter  = $420.175

Explanation:

given data

scooter costs = $2,500

depreciation rate r = 30%

time = 5 year

solution

we get here value of this scooter after 5 years that is express as

value of scooter  = original cost ×  $(1-r)^{time}$   ...............1

put here value we get

value of scooter  = $2500 ×  $(1-0.30)^{5}$

value of scooter  = $420.175