Question

You purchased a new truck for $55,000 , assuming it depreciates 20% when you drive it off the car lot then depreciates at a constant rate of 12 % a year, how much will it be worth in 5 years ?​

Answer 1

$55,000 - 20% = $11,000. $11,000 depreciating by 12% a year for 5 years is $5,805.05