Question

The present value of an oil engine is 14580. What was the worth of the engine 3 years before if the value depreciates at the rate of 10% every year

Answer 1

Answer:

Price of engine 3 year before is 11809.8

Step-by-step explanation:

Given that present value of engine is 14580 and  Rate of depreciation is 10% per year

we have to find price of engine 3 year before

We solve this question by using the formula,

$A=P(1-\frac{R}{100} )^{n}$

In this question, P=14580

R=10% per year

T=3 years ⇒ n=3

∴ $\text{Price of engine 3 year before=}$$P(1-\frac{R}{100} )^{2}$

=$14580(1-\frac{10}{100} )^{2}$

=11809.8