a new truck sells for 25,000 depreciates (decreases in value) 11% each year. What will be the value of the truck in 2 years?
A: 11,000
B: 15,686
C: 17,624
D: 19,803
I think A
A is not right.
@Ms.Sue can you help me out?
now I think its C
After one year, the car is worth:
25,000 * 0.89 = 22,250
What is it worth after the second year?
19803? so D
D is correct.
Thank you c:
You are welcome.
To determine the value of the truck in 2 years, we need to calculate its depreciation over time. The truck depreciates 11% each year.
To calculate the value of the truck after 1 year, we need to subtract 11% of the original value from the original value. 11% of $25,000 is $2,750. Therefore, the value of the truck after 1 year is $25,000 - $2,750 = $22,250.
To calculate the value of the truck after 2 years, we need to subtract 11% of the value after 1 year from the value after 1 year. 11% of $22,250 is $2,447.50. Therefore, the value of the truck after 2 years is $22,250 - $2,447.50 = $19,802.50.
So, the correct answer is D: $19,803.