Question

A bus service company purchases a new bus for $500,000. The value of the

bus depreciates by 25% in the first year and 15% in the next. What is the

value of the bus after two years?

$318,250

$318,500

$318,750

$319,000

$319,250​

Answer 1

Answer:

value of bus after two year 218.75

Answer 2

Answer:

$318,750

Step-by-step explanation:

After the 1st year, 25% depreciated thus, real value of the bus in percentage is 75%

0.75 x 500,000 = 375,000

Value of the bus after 1st year is now 375,000

In the second year, the bus depreciated by 15%, thus, real value in percentage is 85%

0.85 x price after the first year.

0.85 x 375,000 = 318,750

Thus after two years, the value of the bus is $318,750

If you found this solution useful, like and vote it