Roula paid $37 250 for a new van for her courier service and depreciated it at 28% per annum. What was the depreciated value of the van after two years?

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Answer 1 · 2018-03-20T05:51:49

# color(blue)("Value of van after depreciation in 2 years " color(brown)( $19,310.40#

Cost of the van #C = $ 37, 250

Annual depreciation rate#d = 28%#

Depreciated value of van after 2 years

#D = C(1-(d/100)^n) = 37250 * (1 - 0.28)^2#

# color(blue)("Value of van after depreciation in 2 years " = 37250 * 0.72^2#

# color(brown)(=> $19,310.40#