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Today, 04:02

A new truck that sells for $25,000 depreciates (decreases in value) 11% each year. What will be the value of the truck in 2 years

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  1. Today, 04:41
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    Original price = $25,000

    Depreciation rate = 11%

    Note that 1 - 0.11 = 0.89.

    Value after 1 year = $25,000 (0.89) = $22,250

    Value after 2 years = $22,250 (0.89) = $19,802.50

    Answer: $19,802.50
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