A tractor costs $14,340 and depreciates in value by 15% per year. How much will the tractor be worth after 3 years?
To calculate the value of the tractor after 3 years, we first need to calculate the depreciation for each year.
Year 1: 15% of $14,340 = $2,151
Value after Year 1: $14,340 - $2,151 = $12,189
Year 2: 15% of $12,189 = $1,828.35
Value after Year 2: $12,189 - $1,828.35 = $10,360.65
Year 3: 15% of $10,360.65 = $1,554.10
Value after Year 3: $10,360.65 - $1,554.10 = $8,806.55
Therefore, the tractor will be worth $8,806.55 after 3 years.