A tractor costs $14,340 and depreciates in value by 15% per year. How much will the tractor be worth after 3 years?
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After 1 year:
Value = $14,340 - (15% of $14,340)
Value = $14,340 - $2,151
Value = $12,189
After 2 years:
Value = $12,189 - (15% of $12,189)
Value = $12,189 - $1,828.35
Value = $10,360.65
After 3 years:
Value = $10,360.65 - (15% of $10,360.65)
Value = $10,360.65 - $1,554.10
Value = $8,806.55
Therefore, after 3 years, the tractor will be worth $8,806.55.