You buy a used truck for $20,000. The truck depreciates 7% per year. What is the value

of the truck after 8 years?

Answer: $11,191.64

Step-by-step explanation:

Depreciation is the decrease in worth an item experiences as it is being used to perform it's needed function and the formula for Depreciation of these Valuables is generally given as:

D = P * [1 - r/100]^n

Where D = the new depreciated value after n period.

P = initial value of item

r = rate of depreciation

n = duration of depreciation being considered.

As given in the question, P = $20,000. r = 7%, n = 8years, then the depreciated value after 8years becomes:

D = 20,000 * [1 - 7/100]^8

D=$11,191.64