andreaappiah10
contestada

The value of a machine depreciates each year by 5% of its value at the beginning of that year.If its value when new on 1st January,1980 was £10,250.00,what was its value in January 1989 when it was 9 years old?Give your answer, correct to three significant figures.​

Respuesta :

Jazzet

Answer:

6460 pounds approx.

Step-by-step explanation:

Depreciation = P( 1 - r/100)^n [ n = time period, P= Principal and r= rate}

= 10,250(1-5/100)^9

= Approx. 6460 pounds

The value in January 1989 when it was 9 years old would be 6460 pounds approx.

How to calculate the Depreciation ?

The Depreciation can be calculated by the following formula as;

Depreciation = P( 1 - r/100)^n

Where, [ n = time period, P= Principal and r= rate}

We have been given n = 9

P = 10,250

r = 5%

Substitute;

Depreciation = P( 1 - r/100)^n

Depreciation = 10,250(1-5/100)^9

Depreciation = 6460 pounds

Hence, its value in January 1989 when it was 9 years old would be 6460 pounds.

Learn more about Depreciation ;

https://brainly.com/question/15022856

#SPJ2