Question

A tractor costs $12,250 and depreciates in value by 6% per year. How much will the tractor be worth in 6 years?

Answer 1

Answer: $7,840

Step-by-step explanation:

Multiply then 12,250 by 6% or 0.06 to get 735 then multiply the 735 by 6 because that’s how many years there are and you get 4,410 then subtract that from the 12,250 to get how much the tractor will cost after 6 years.

Answer 2

The worth of the tractor in 6 years when the cost of the tractor is $12,250 and depreciates with rate of 6% per year is $8450.9.

What is depreciation?

Depreciation is to decrease in the value of a product in a period of time. This can be given as,

$FV=P\left(1-\dfrac{r}{100}\right)^n$

Here, (P) is the price of the product, (r) is the rate of annual depreciation and (n) is the number of years.

The cost of the tractor is $12,250 which depreciates in value by 6% per year. The worth of the tractor in 6 years is,

$FV=12250\left(1-\dfrac{6}{100}\right)^6$

FV=$8450.9

Thus, the worth of the tractor in 6 years when the cost of the tractor is $12,250 and depreciates with rate of 6% per year is $8450.9.

Learn more about the depreciation here;

https://brainly.com/question/25297296

#SPJ2