Pregunta
The 1 alue of Alex’s van could also be depreciated using the reducing balance method of depreciation.
The value of the van, in dollars, after
years,
, can be modelled by the recurrence relation show
below.
At what annual percentage rate is the value of the van depreciating each year?
Write your answer…
The value of the van, in dollars, after
below.
Write your answer…
Ask by Black Robbins. in Australia
Mar 15,2025
Solución de inteligencia artificial de Upstudy
Respuesta verificada por el tutor
Responder
The van is depreciating at an annual rate of 5.7%.
Solución

¡Inicia sesión para desbloquear respuestas gratis!
Una plataforma de aprendizaje en la que confían millones de estudiantes y profesores reales.

Respondido por UpStudy AI y revisado por un tutor profesional
Como
Beyond the Answer
The recurrence relation you’ve provided indicates that each year, the value of Alex’s van is multiplied by 0.943. To find the annual percentage rate of depreciation, you can simply calculate it using the formula:
This means that the value of the van depreciates at approximately 5.7% annually. It’s important to keep in mind that depreciation is common for vehicles, and understanding how it works can help in making better financial decisions when purchasing or selling.
Another fun fact is that this method of depreciation doesn’t just apply to vehicles! Many businesses use the reducing balance method for their equipment and assets as well. By using this approach, they reflect the decrease in value more realistically over time, which can be pivotal for accurately managing finances, taxes, and making informed investment choices.

¡Prueba Premium ahora!
¡Prueba Premium y hazle a Thoth AI preguntas de matemáticas ilimitadas ahora!
Quizas mas tarde
Hazte Premium