a car sells for $25000. if the rate depreciation is 15% what is the value of the car after 7 years
To find the value of the car after 7 years with a depreciation rate of 15%, we can use the formula:
Value after depreciation = Initial value - (Depreciation rate * Initial value * Number of years)
Initial value = $25,000
Rate of depreciation = 15% (or 0.15)
Number of years = 7
Plugging in the values, we can calculate the value after 7 years:
Value after depreciation = $25,000 - (0.15 * $25,000 * 7)
Value after depreciation = $25,000 - $26,250
Value after depreciation = -$1,250
Therefore, the value of the car after 7 years with a 15% depreciation rate is -$1,250.
To find the value of the car after 7 years with a depreciation rate of 15%, you can use the formula for calculating depreciation:
Value after depreciation = Initial value - (Depreciation rate * Initial value)
In this case, the initial value of the car is $25,000 and the depreciation rate is 15%.
Step 1: Calculate the value after the first year of depreciation.
Value after 1st year = $25,000 - (0.15 * $25,000)
= $25,000 - $3,750
= $21,250
Step 2: Calculate the value after the second year of depreciation.
Value after 2nd year = $21,250 - (0.15 * $21,250)
= $21,250 - $3,187.5
= $18,062.5
Continue this process for each subsequent year until you reach 7 years.
Step 3: Calculate the value after the third year of depreciation.
Value after 3rd year = $18,062.5 - (0.15 * $18,062.5)
= $18,062.5 - $2,708.88
= $15,353.62
Step 4: Calculate the value after the fourth year of depreciation.
Value after 4th year = $15,353.62 - (0.15 * $15,353.62)
= $15,353.62 - $2,303.04
= $13,050.58
Continue this process until you reach the 7th year.
Step 5: Calculate the value after the fifth year of depreciation.
Step 6: Calculate the value after the sixth year of depreciation.
Step 7: Calculate the value after the seventh year of depreciation.
By following these steps, you can find the value of the car after 7 years with a depreciation rate of 15%.
25,000 * 0.15 = 3,750
25,000 - 3,750 = 21,250 >> value after year 1.
21,250 * 0.15 = 3,187.5
21,250 - 3,187.5 = $18,062.5 >> value after year 2.
Continue this procedure til you come to the end of year 7.