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11-05-2018
Mathematics

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A tractor was purchased for $30,000 six years ago. what is the value of the tractor today if the depreciation rate was 2.5%?

Respuesta :

20-05-2018

Initial cost = $30,000
Depreciation rate = 2.5%

Depreciation expense per year = 30,000*2.5/100 = $750
In six years,
Depreciation = 6*750 = $4,500

Value of the tractor = Initial cost - Depreciation = $30,000 - $4,500 = $25,500

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