daniels print shop purchased a new printer for $35,000. Each year it depreciated at a rate of 5%. What will its approximate value be at the end of the fourth year?
To find the approximate value of the printer at the end of the fourth year, we need to calculate the depreciation of the printer for each year and subtract it from the original purchase price.
First, let's calculate the depreciation for each year:
Year 1 depreciation:
Depreciation = 5% of $35,000
Depreciation = 0.05 * $35,000
Depreciation = $1,750
New value after Year 1:
Value after Year 1 = $35,000 - $1,750
Value after Year 1 = $33,250
Year 2 depreciation:
Depreciation = 5% of $33,250
Depreciation = 0.05 * $33,250
Depreciation = $1,662.50
New value after Year 2:
Value after Year 2 = $33,250 - $1,662.50
Value after Year 2 = $31,587.50
Year 3 depreciation:
Depreciation = 5% of $31,587.50
Depreciation = 0.05 * $31,587.50
Depreciation = $1,579.38
New value after Year 3:
Value after Year 3 = $31,587.50 - $1,579.38
Value after Year 3 = $30,008.12
Year 4 depreciation:
Depreciation = 5% of $30,008.12
Depreciation = 0.05 * $30,008.12
Depreciation = $1,500.41
New value after Year 4:
Value after Year 4 = $30,008.12 - $1,500.41
Value after Year 4 = $28,507.71
Therefore, the approximate value of the printer at the end of the fourth year will be approximately $28,507.71.
(0.95)^4 x 35,000
= 0.8145 * 35,000 = $ _____