ool and die company buys a machine for $175,000 and it depreciates at a rate of 30% per year. (In other words, at the end of each year the depreciated value is 70% of what it was at the beginning of the year.) Find the depreciated value of the machine after 5 full years.
sorry didnt get whole question.
A tool and die company buys a machine for $175,000 and it depreciates at a rate of 30% per year. (In other words, at the end of each year the depreciated value is 70% of what it was at the beginning of the year.) Find the depreciated value of the machine after 5 full years.
geez - even so, Reiny gave you the answer ...
To find the depreciated value of the machine after 5 full years, you need to apply the depreciation rate of 30% per year for each year.
Here's how you can calculate it step by step:
1. Year 1: Start with the initial value of $175,000 and multiply it by 70% (or 0.70) to get the depreciated value at the end of the first year.
Depreciated value = $175,000 * 0.70 = $122,500
2. Year 2: Take the depreciated value from Year 1 ($122,500) and multiply it by 70% (or 0.70) to get the depreciated value at the end of the second year.
Depreciated value = $122,500 * 0.70 = $85,750
3. Year 3: Use the depreciated value from Year 2 ($85,750) and multiply it by 70% (or 0.70) to get the depreciated value at the end of the third year.
Depreciated value = $85,750 * 0.70 = $59,525
4. Year 4: Take the depreciated value from Year 3 ($59,525) and multiply it by 70% (or 0.70) to get the depreciated value at the end of the fourth year.
Depreciated value = $59,525 * 0.70 = $41,667.50
5. Year 5: Finally, use the depreciated value from Year 4 ($41,667.50) and multiply it by 70% (or 0.70) to get the depreciated value at the end of the fifth year.
Depreciated value = $41,667.50 * 0.70 = $29,167.25
Therefore, the depreciated value of the machine after 5 full years is $29,167.25.
what is
175000(.7)^5 ??