Question

Lowell purchased a motorcycle for $17,011. It depreciates about 3.9% each year. What is the value of the motorcycle after eight years?

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Answer 1

100% - 3.9% leaves 96.1% of its value = 0.961*worth of the previous year.

value at years = 17011*(0.961)^8

= $12374.19 after 8 years