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