A machine loses of its value each year. After years it is worth \17\,036.80$. What was its value when new, in dollars?
Answer and explanation
Correct answer: B. 25000
- Step 1: When an asset loses of its value each year, its annual retention multiplier is .
- Step 2: Over a -year period, the compound depreciation factor is .
- Step 3: Divide the current value by the depreciation factor to determine the original purchase value: .
Answer
25000.
Practise more Percentages and percent change.
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